On Saturday, June 11, a severe storm passed through the town of Hardin, damaging several structures, including the power generating facility that supplies Marathon’s bitcoin mining operations with power. Since the storm passed, inspections to assess the damage of the power plant have been ongoing. In the past few days, Marathon received a damage assessment. According to the findings, the plant’s cooling towers are in need of repair. Initial electrical tests on Marathon’s miners have been positive, indicating that the majority of the Company’s miners were not materially damaged by the storm.

Prior to the storm, the 30,000 miners Marathon had deployed in Montana represented over 75% of the Company’s active fleet. With these miners offline, Marathon’s bitcoin production is expected to be significantly reduced until repairs to the power generating facility in Montana can be completed or until the miners can be relocated to new facilities. As announced on April 5, Marathon was already preparing to move miners from this facility to more sustainable sources of power during the third quarter of this year. The Company is currently evaluating the possibility of expediting the move of its miners from Montana to new hosting locations.