Marathon Digital, a Bitcoin mining company, experienced a 21% decline in Bitcoin mined during June, citing harsh weather conditions in Texas and a significant drop in transaction fees as contributing factors.
The company’s operations in Texas produced 979 Bitcoin, a notable decrease compared to the previous month.
National Weather Service data revealed a substantial temperature increase in Texas, with an 8.4 degrees Fahrenheit jump from May to June. These weather changes have historically disrupted crypto mining operations in the state.
Other mining firms, like Riot Platforms, have also faced operational challenges due to extreme weather conditions. For example, severe winter weather in February caused 17,040 mining rigs to go offline temporarily.
In addition to weather-related setbacks, Marathon Digital experienced a decline in transaction fees, which accounted for roughly 5.1% of total Bitcoin earnings in June, compared to 11.8% in May.
This decrease occurred despite the increased transaction fees resulting from the introduction of Bitcoin Ordinals in May.
Despite the recent downturn, Marathon Digital remains optimistic about the long-term profitability of mining. The situation highlights the vulnerability of crypto mining operations to external factors, particularly weather conditions.
Argo Blockchain, another mining firm operating in West Texas, had to suspend mining activities temporarily in 2022 due to a conservation alert issued by the Electric Reliability Council of Texas.