Marathon Digital, a prominent Bitcoin mining company in the United States, experienced a significant increase in revenues in 2023, leading to a profitable year. However, the release of its fourth-quarter revenue report caused a decline in the company’s stock.
On February 28, Marathon Digital published its earnings report for the fourth quarter and the entire year. The report revealed that the company achieved a record-breaking revenue of $387.5 million in 2023, marking a remarkable 229% increase compared to the previous year.
Marathon CEO Fred Thiel expressed his satisfaction with the performance, stating, “2023 was a year of unprecedented success for Marathon. We successfully revitalized our fleet of mining rigs that were previously acquired and optimized our operations.”
In the fourth quarter alone, the company’s revenue soared by 452% to $156.8 million, surpassing analysts’ expectations and demonstrating a significant jump from $28.4 million in the fourth quarter of 2022. Analysts had predicted a quarterly revenue of $148.8 million.
The surge in revenue can be attributed to a 172% increase in Bitcoin production compared to the previous year, coupled with a doubling of the average BTC price during the period. The company sold 56% of the Bitcoin it mined during the quarter to cover operational costs.
In terms of profitability, Marathon’s adjusted EBITDA (earnings before interest, taxes, depreciation, and amortization) improved to $260 million in the fourth quarter of 2023, compared to a loss of $374 million in the same period of 2022.
Marathon’s Bitcoin production witnessed a remarkable 210% increase, reaching a record 12,852 BTC in 2023. Additionally, the company’s hash rate, a measure of mining power, surged by 253% to 24.7 EH/s (exahashes per second) in 2023 from just 7.0 EH/s the previous year.
During the company’s earnings call, CEO Fred Thiel expressed optimism about Marathon’s future, stating, “While 2023 was an exceptional year for Marathon, we are even more confident about the company’s prospects going forward.”
Salman Khan, Marathon’s Chief Financial Officer, added, “We entered 2024 with a strong balance sheet that positions us well for the upcoming halving and beyond.” The halving refers to the reduction in the rate at which new Bitcoins are created, which occurs approximately every four years.
Despite the positive earnings report, Marathon Digital’s stock experienced a 6.7% decline to $28.95 in after-hours trading on February 29. However, over the past 12 months, the company’s shares have surged by more than 300%.
In addition to its mining activities, Marathon recently announced the development of a Bitcoin layer-2 sidechain platform called Anduro, demonstrating the company’s expansion beyond crypto mining.
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