BTC Miner Marathon Digital’s Q3 Earnings Break Estimates

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Key Takeaways

  • The Miner reported earnings of $0.35 per share, compared to the projected loss of $0.11 per share.
  • The company sold 66% of the bitcoins generated in the last quarter.

Marathon Digital Holdings, a prominent Bitcoin mining company in North America, has witnessed substantial growth in its Q3 2023 revenue. 

The company reported a remarkable 670% year-on-year increase, driven by a nearly five-fold surge in Bitcoin production.

Marathon Digital managed to exceed expectations in terms of earnings for the third quarter, outperforming analyst estimates. The company reported earnings of $0.35 per share, compared to the projected loss of $0.11 per share, according to FactSet data. 

However, the Q3 revenue of $97.8 million fell slightly short of the estimated $99.6 million. During the third quarter, Marathon Digital achieved a significant milestone by producing 3,490 bitcoins, marking a substantial increase from the 2,926 bitcoins produced in the previous quarter and the 616 produced during the same period a year ago. 

To cover operating costs, the company sold 66% of the bitcoins generated in the last quarter. Marathon Digital Holdings has ambitious plans for the future, with an anticipated Bitcoin mining hash rate of 26 exahashes per second (EH/s) for 2023. 

Additionally, the company aims to expand its hash rate by approximately 30% in 2024. If these projections are realized, Marathon is poised to become the largest publicly traded mining firm in terms of hash rate.

The positive results have enabled Marathon to shift from a quarterly loss to a profit, recording $64.1 million in net income for the third quarter, as detailed in the company’s November 8 results filing. This financial improvement can be attributed to a substantial 467% increase in Bitcoin production, rising from 6.7 mined BTC per day in Q3 2022 to 37.9 BTC per day in Q3 2023. 

Concurrently, Marathon’s hash rate witnessed a remarkable 403% growth during the same period. One of the factors contributing to the boost in hash rate is Marathon’s newly established 27-megawatt hydro-powered mining initiative in Paraguay, as announced on November 8. 

Marathon’s CEO and Chairman, Fred Thiel, emphasized that this significant progress has strengthened the firm’s financial standing ahead of the impending Bitcoin halving event scheduled for April 2024.

Thiel highlighted the successful completion of a $417 million note exchange in September, effectively reducing Marathon’s long-term debt to 56%. This strategic move translated to over $100 million in savings for the company’s shareholders.

 In a significant milestone, Marathon’s combined cash and Bitcoin holdings have now exceeded its outstanding debt, marking a pivotal moment for the firm. As Marathon Digital Holdings remains committed to enhancing its hash rate, the company currently maintains an installed hash rate of 23.1 exahashes per second.  Looking ahead, the company aims to boost this figure to 26 EH/s and further increase it by an additional 30% in 2024.

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Saniya Raahath
Saniya Raahath

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