Bitcoin mining company Marathon Digital attributes its 21% decline in Bitcoin mined in June to harsh weather conditions in Texas and a significant fall in transaction fees, according to a statement on July 5.
The firm’s main operations based in Texas produced 979 Bitcoin, markedly less than the previous month due to the impact of the transition from spring to summer.
National Weather Service data showed a considerable temperature increase in Texas, with an 8.4 degrees fahrenheit jump from an average of 75.6 degrees in May to 84 degrees in June.
Such changes in weather conditions have historically proven disruptive for crypto mining operations in the state.
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For instance, Riot Platforms, another crypto mining firm, experienced a temporary halt in its operations when 17,040 of its rigs went offline due to severe winter weather in February.
Further compounding Marathon Digital’s challenges, the company’s transaction fees dipped to roughly 5.1% of the total Bitcoin earnings for June, down from 11.8% in May.
This decline came despite the increased transaction fees brought about by the advent of Bitcoin Ordinals in May.
Although network congestion receded in June, Marathon Digital maintains an optimistic view regarding the long-term profitability of mining.
The recent downturn highlights the susceptibility of crypto mining operations to external factors, particularly weather conditions.
In 2022, Argo Blockchain, another crypto mining firm operating in West Texas, was forced to suspend its mining activities temporarily due to a conservation alert issued by the Electric Reliability Council of Texas.
In contrast, a July 5 report by Coin Metrics, a cryptocurrency analytics platform, revealed a bright spot for the broader industry:
Bitcoin miners accrued $184 million from transaction fees in Q2 2023, surpassing the total earnings from fees for the entirety of 2022. Despite individual setbacks, this suggests a thriving overall trend for the industry.
