Key Takeaways
- Marathon reported fourth-quarter sales of $156.8 million, surpassing the average analyst estimate of $148.8 million.
- The revenue surge was attributed to a 172% increase in BTC production year-over-year, combined with a notable rise in the average BTC price during the period
Marathon Digital, a prominent Bitcoin miner, experienced a surge in revenues in 2023, marking a significant shift to profitability. However, the company’s stock witnessed a decline following the release of its fourth-quarter revenue report.
According to FactSet data, Marathon reported fourth-quarter sales of $156.8 million, surpassing the average analyst estimate of $148.8 million. Despite this positive outcome, the company disclosed that the quarter’s net loss would have been $0.02 per share, excluding the impact of new accounting rules, while analysts had anticipated earnings per share of $0.04.
Marathon CEO Fred Thiel expressed satisfaction with the company’s performance in 2023, describing it as a record-breaking year marked by the optimization of their mining fleet. The fourth-quarter revenue saw a staggering 452% increase to $156.8 million, exceeding analyst expectations and showing a significant rise from $28.4 million in the fourth quarter of 2022.
This surge in revenue was attributed to a 172% increase in Bitcoin production year-over-year, combined with a notable rise in the average BTC price during the period. Notably, Marathon sold 56% of the Bitcoin it produced during the quarter to cover operating costs.
Adjusted EBITDA improved to $260 million in Q4, 2023, from a loss of $374 million in the same period of 2022. Marathon’s Bitcoin production also witnessed a remarkable 210% increase to a record 12,852 BTC in 2023, with the energized hash rate rising by 253% to 24.7 EH/s (exahashes per second).
Thiel expressed optimism about Marathon’s future prospects, emphasizing the company’s strong balance sheet as it enters 2024. Despite the positive earnings report, Marathon’s shares experienced a 6.7% decline on the day, falling to $28.95 in after-hours trading on Feb. 29. However, the mining giant’s shares have surged more than 300% over the past 12 months.
Marathon disclosed that it sold 56% of the Bitcoin it produced during the quarter to fund operating costs. Additionally, the company reported earnings of 66 cents per share for Q4, a significant improvement from a loss of $3.13 per share a year earlier.
In a separate announcement, Marathon revealed its plans to launch a new Bitcoin layer-2 network called Anduro. This initiative aims to facilitate the creation of multiple sidechains to foster innovation within the Bitcoin ecosystem.
