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Source: AdobeStock / Photocreo Bednarek

Marathon Digital Holdings, a prominent Bitcoin mining company, has announced a remarkable financial performance in the third quarter of 2023. The company reported a substantial 670% year-on-year increase in profit, primarily driven by a nearly five-fold rise in Bitcoin production.

In the third quarter of 2023, Marathon achieved a net income of $64.1 million, equivalent to $0.35 per diluted share. This impressive turnaround represents a significant improvement compared to the same period in the previous year, when the company reported a net loss of $72.5 million, or $0.62 loss per share. Revenues for the third quarter of 2023 reached $97.8 million, marking a substantial increase from the third quarter of 2022, when revenues were $12.7 million.

Marathon’s Q3 Report Shows Surge in Bitcoin Production and Prices, Boosting Financial Results

Marathon attributes its improved performance to several key factors, including a 467% surge in Bitcoin (BTC) production, increasing from 6.7 mined BTC per day in Q3 2022 to an impressive 37.9 BTC per day in Q3 2023. Additionally, a 32% rise in average bitcoin prices contributed to the company’s success.

During the third quarter, Marathon produced 3,490 bitcoins, representing a significant increase from 2,926 in the previous quarter and only 616 in the same quarter a year ago. Notably, the company reported gains of $31.7 million from digital assets, with 66% of the generated bitcoins in the last quarter being sold to cover operating costs.

Marathon’s energized hashrate saw a remarkable 403% increase during the same timeframe while also highlighting its improved uptime, increasing its U.S. average operational hash rate by 18% from the previous quarter to 14.2 exahashes.

Furthermore, Marathon reported that its new facility in Garden City began energizing operations last week and is expected to be fully operational later this month. The company is also preparing to energize its first joint venture and its inaugural international location in the United Arab Emirates (UAE).

Marathon Digital Strengthens Financial Position, Gears Up for Hash Rate Expansion

Marathon’s CEO and chairman, Fred Thiel, said the “significant progress” has helped strengthen the firm’s balance sheet ahead of the Bitcoin halving event scheduled for April 2024. This includes a $417 million note exchange completed in September, reducing long-term debt by 56%.

Thiel noted:

“For the first time in two years, our combined cash and bitcoin holdings exceeded our debt at the quarter’s end.”

Furthermore, Marathon looks ahead to reaching a hash rate of 26 exahashes by year-end 2023, with plans to grow the hash rate by approximately 30% in 2024 after launching its 27-megawatt hydro-powered mining venture in Paraguay, which was announced on November 8.

A webcast and conference call discussing Q3 2023 earnings was held by Marathon Digital Holdings on November 8, 2023, at 4:30 p.m. Eastern time. Meanwhile, the webcast will be available for replay via the investor relations section of the company’s website.

Despite the positive earnings report, Marathon Digital (MARA) stock experienced a 6.9% decline during the regular session on Wednesday. However, in after-hours trading, shares rebounded modestly by 0.8%. It’s worth noting that MARA stock has seen impressive growth, rising nearly 140% this year, outperforming the 73% gain in Bitcoin (BTC) prices.

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