Marathon Digital Holdings, Inc. (NASDAQ:MARA) Q3 2023 Earnings Call Transcript

Kevin Dede: Yeah, so obviously we’re very focused on the lowest performing site and you know the McCammy, Texas site has clearly been that site. That’s the site where we’ve had to apply the most amount of resources. Our Ellendale site has been a very good performer, as is the Jamestown site. There’s been some infrastructure downtime for maintenance issues at some of the sites as well. But I think what you’ll tend to find is, provided we are in a period where there is not a lot of curtailment due to requirements of the grid, we’re going to keep pushing that performance number to 90 and above as much as possible.

Kevin Dede: And what do you think your timeline is to that? Should we see that step up incrementally, or do you think there should be a nice jump before we get to maybe a higher power consumption season in January and February?

Fred Thiel: So I think it’s going to be a little seasonal, but I think it’ll be a gradual move. Part of this is you implement a change, you test it, you iterate, you make sure it sticks, and then you broaden it out. It’s kind of like when we deploy firmware in our miners, we do it in a limited number of miners initially, make sure everything is operating, and then we scale it as we go across the site. Same thing with any changes, whether it’s a network optimization, whether it’s deploying cooling or switch gear, there are a whole series of different things we’re constantly experimenting with to try to optimize and something that works at one site may not work at another site. And so it’s very much an iterative process. And I have a background in lean from a manufacturing perspective and we’ve really applied a ties in sort of lean approach to this where constant never-ending improvement is 1 of our core values in what we’re doing here.

And we hold the operations teams to metrics where they need to continually improve performance of the sites. And so it’s an iterative process.

Kevin Dede: Understood. Thank you so much, Fred. And really appreciate you indulging me. Back in the queue. Thank you.

Operator: Thank you. At this point, there are no further questions. I’m going to turn the call back over to Chris Brendler for closing remarks.

Chris Brendler: Okay, well thank you all for your time today. If you have any questions that were not answered during our today’s call, please feel free to contact our Invest Relations team at ir@mara.com. Thank you and enjoy the rest of your day.

Operator: Thank you. This will conclude today’s conference. You may disconnect your lines at this time and thank you for your participation.