TLDR
- MARA Holdings announced a monumental record in revenue for Q4 2024, hitting $214.4 million. This marks a 37% increase compared to the previous year, despite the hurdles faced due to the halving of Bitcoin rewards.
- Skyrocketing by 248%, MARA's net income reached an impressive $528.3 million, with earnings per share triumphing over analyst forecasts, which had predicted a loss of -$0.32.
- MARA saw its hashrate flourishing by 115%, climbing to 53.2 EH/s, even while the amount of Bitcoin mined decreased by 27% year-over-year to 2,492 BTC. Nonetheless, the number of blocks won jumped by an impressive 25%.
- Energy expenditures for MARA surged by 70%, reaching a total of $127.4 million. The direct energy cost per Bitcoin went up to $28,801.
- Possessing a notable accumulation of 44,893 BTC valued at $4.6 billion, MARA did not engage in any Bitcoin sales throughout Q4 2024.
MARA Holdings, a company at the forefront of Bitcoin mining, has achieved unprecedented revenue and earnings in the last quarter of 2024, surpassing predictions made by analysts, even in the face of the challenges introduced by the previous year's Bitcoin halving.
The 37% increase in revenue reported by the company in Q4 summed up to $214.4 million, escalating from $156.8 million during the same period last year.
Notably, MARA's net income for the quarter jumped by 248%, reaching $528.3 million, a significant leap from $151.8 million recorded in Q4 2023. This progress came despite the April 2024 Bitcoin halving, which reduced miners' rewards.
The halving event, which takes place approximately every four years, diminished the rewards for solving cryptographic challenges by 50%, slashing the payout from 6.250 BTC to just 3.125 BTC per block.
Bitcoin Halving
Following the halving, MARA's Bitcoin output dropped to 2,492 BTC in Q4 2024, reflecting a 27% decline from 3,490 BTC mined in the corresponding quarter of 2023. This shrink in mining rewards posed a considerable obstacle for the entire industry.
Yet, in spite of a reduced Bitcoin yield, MARA boosted the total blocks won by an impressive 25%, achieving 703 blocks in Q4 2024, compared to 562 blocks in Q4 2023, helping to counterbalance some of the effects of diminished rewards.
The company's earnings per share shattered expectations, coming in at $1.24, decisively outshining analyst forecasts, which had predicted a loss of -$0.32 per share. According to Zacks Equity Research, this corresponds to an extraordinary earnings surprise of 487.50%.
After disclosing its earnings, MARA's stock rose by 7.41% to $13.38 in after-hours trading. This encouraging outcome emerged even though the stock price had dipped around 26% since the year's beginning, juxtaposed with the S&P 500's gain of 1.3%.
Significant growth was observed in MARA’s hashrate through the quarter. It increased by 115%, reaching 53.2 EH/s from 24.7 EH/s in Q4 2023, driven by pivotal acquisitions and expanded energy capability.
This elevation in hashrate kept MARA competitive in a challenging mining landscape. Hashrate, a measure of computational muscle, influences transaction processing speed and network security.
MARA faced increasing costs with their energy usage. Their energy and hosting expenses increased sharply by 70%, totaling $127.4 million in Q4 2024, in contrast to $75.1 million in the same period of 2023.
At MARA's owned sites, the direct energy cost per Bitcoin climbed to $28,801, a rise from $23,000 the previous year. The elevated costs illustrate the hurdles associated with scaling up operations while seeking profitability.
As shared by CEO Fred Thiel, the company is placing emphasis on becoming the industry's most cost-efficient mining operator.
“Our aim transcends beyond just Bitcoin mining; we aspire to be the cost leader in a domain where efficiency and resilience are crucial,” Thiel conveyed in the shareholder letter.
For the year 2024, MARA reported a BTC yield per share growth of 62%. Notably, the company didn't liquidate any of its substantial holding of 44,893 BTC, which carries an approximate $4.6 billion value, positioning MARA as the second-largest corporation in Bitcoin holdings.
Although MARA's results were exemplary, other industry players weren't as fortunate. Bitdeer, a mining entity based in Singapore, revealed a $532 million loss for Q4. Despite investing in self-developed mining chips, Bitdeer's stock plunged 20% post-announcement.
In a report by JP Morgan, publicly traded crypto entities, including Bitcoin mining companies like MARA, surpassed the wider crypto market in January. The total market cap for these firms grew by 14%, reaching a valuation of $108 billion. By comparison, the broader crypto market ended January with a market cap around $3.2 trillion, indicating an 8% uptick.
