TLDR
- The company recorded $145.1 million in revenue for the second quarter, coming short of the anticipated $157.9 million according to analyst projections.
- A net loss of $199 million, equating to $0.72 per share, was registered by the company, showing a dramatic rise from the $9 million loss experienced in the same quarter of the previous year.
- Bitcoin production at Marathon reduced by 30% year-over-year, totalling 2,058 BTC in the second quarter.
- Marathon reported a substantial 78% increase in its active hash rate, hitting 31.5 EH/s over Q2.
- The company added over $100 million worth of Bitcoin to its holdings, bringing the total to more than 20,000 BTC on their balance sheet.
Marathon Digital Holdings , a leading Bitcoin mining company, Released on the 1st of August, Marathon's financial results for Q2 2024 uncovered marked challenges tied to the post-halving landscape in crypto mining. Reported earnings of $145.1 million in Q2 fell short of the $157.9 million Wall Street forecasted but showed a 78% growth from the $81.7 million attained in Q2 2023, chiefly because of an uptick in Bitcoin’s average price and fresh hosting service income.
Marathon faced a steep net loss of $199 million, or $0.72 per diluted share, sharply contrasting with the $9 million loss a year earlier, primarily because of a $148 million decline in the fair market value of digital assets. Analysts had predicted an EPS of -$0.19, missing the actual number by $0.53.
A noticeable drop in Bitcoin extraction was noted, with 2,058 BTC produced, down 30% against the 2,926 BTC in the second quarter of the previous year. This dip was due to unpredictable equipment breakdowns, the April Bitcoin halving event, and heightened global hash rates.
Fred Thiel, CEO of Marathon, highlighted the challenges from unpredicted equipment malfunction and competition pressures in a statement concerning maintenance issues at the Ellendale site.
In his words, Thiel pinpointed equipment failures and maintenance complications at the Ellendale site, increased competitiveness due to the global hash rate rise, and the April halving event as factors affecting BTC output.
Marathon Digital celebrated certain advancements despite recent hurdles. The firm highlighted a 78% uptick in its energized hash rate, hitting a historic high of 31.5 EH/s. Thiel noted a target of 50 exahash by 2024’s close, with more expansion in sight for 2025.
Marathon's financial state remained robust, boasting $1.4 billion in liquid assets and Bitcoin as of June 30. The company wrapped up the quarter with 18,488 Bitcoin and later purchased an extra $100 million worth, raising total BTC holdings to upwards of 20,000.
Reacting to the quarter's struggles, over half of the mined Bitcoin, 51%, was sold to balance operating expenses. Despite production decreases, the average BTC mined price was 136% higher than the previous year, offering some relief.
Following Marathon's disappointing earnings release, their stock experienced a 7.78% dip, closing the trading day at $18.14, amidst a broader market downtrend fueled by overheating tech stocks.
The obstacles Marathon faced in Q2 mirror broader industry-wide Bitcoin mining trials following the Bitcoin halving event, with peers like Riot Platforms facing similar challenges, as evidenced by their $84.4 million net loss.
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