Marathon Digital, a prominent Bitcoin mining company based in the United States, experienced a significant increase in revenue in 2023, leading to a profitable year. However, despite these positive results, the company’s stock price declined after the release of its fourth-quarter revenue report.
On February 28, Marathon Digital published its earnings report for the fourth quarter and the entire year. The report revealed that the company generated a record-breaking revenue of $387.5 million in 2023, marking a staggering 229% increase compared to the previous year.
Marathon’s CEO, Fred Thiel, expressed his satisfaction with the company’s performance, stating that 2023 was a remarkable year for them. He emphasized that their main objectives of optimizing their operations and revitalizing their fleet of mining rigs were successfully achieved.
The fourth-quarter revenue also exhibited substantial growth, surging by 452% to reach $156.8 million. This figure exceeded the expectations of analysts and was a significant improvement from the $28.4 million generated in the fourth quarter of 2022. Analysts had predicted a quarterly revenue of $148.8 million.
The surge in revenue was primarily driven by a 172% increase in Bitcoin production compared to the previous year, coupled with a doubling of the average BTC price during the same period. The company sold 56% of the Bitcoin it produced to cover its operating expenses.
Furthermore, the adjusted EBITDA (earnings before interest, taxes, depreciation, and amortization) showed a remarkable improvement. In the fourth quarter of 2023, Marathon achieved an adjusted EBITDA of $260 million, a significant turnaround from the $374 million loss incurred in the same period of 2022.
Marathon’s Bitcoin production also reached new heights in 2023, increasing by 210% to a record 12,852 BTC. Additionally, the company’s hash rate, a measure of computing power in Bitcoin mining, rose by 253% to 24.7 EH/s (exahashes per second) compared to the previous year’s 7.0 EH/s.
During the company’s earnings call, CEO Fred Thiel expressed his optimism about Marathon’s future, stating that despite the success achieved in 2023, they anticipate even greater accomplishments in the coming years. Salman Khan, Marathon’s CFO, added that the company is well-prepared for future challenges, thanks to a strong balance sheet heading into 2024.
Despite the positive earnings report, Marathon Digital’s stock experienced a decline of 6.7% on February 29, reaching a price of $28.95 in after-hours trading. However, it’s worth noting that the company’s shares have soared by over 300% in the past year.
In other news, Marathon recently announced its foray into a new venture beyond crypto mining. On February 28, the company revealed its incubation and development of a Bitcoin layer-2 sidechain platform called Anduro.
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