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Marathon Digital’s Record-Breaking Revenue and Profitability
Marathon Digital, a prominent Bitcoin (BTC) mining company based in the United States, has achieved substantial profitability with a remarkable surge in revenue in 2023. The company unveiled its fourth-quarter and annual earnings report, revealing a record-breaking revenue of $387.5 million in 2023, a staggering 229% increase compared to the previous year.
Surge in Fourth-Quarter Revenue
The fourth-quarter revenue soared by 452% to $156.8 million, surpassing analyst expectations and exhibiting significant growth from $28.4 million in the fourth quarter of 2022. This surge in revenue was primarily driven by a 172% year-over-year increase in Bitcoin production, combined with a nearly doubled average BTC price during the period.
Adjustments and Improvements
To fund operating costs, Marathon Digital sold 56% of the Bitcoin it produced during the quarter. The adjusted EBITDA also showcased improvement, with the company reporting $260 million in Q4 2023 compared to a loss of $374 million in the fourth quarter of 2022.
Notable Growth in Bitcoin Production
Marathon’s Bitcoin production experienced substantial growth, reaching a record 12,852 BTC in 2023, marking a 210% increase. Furthermore, the company’s energized hash rate surged by 253%, reaching 24.7 EH/s (exahashes per second) in 2023, compared to the previous year’s 7.0 EH/s.
Future Outlook and Diversification
“We entered 2024 with a strong balance sheet that has us well-positioned for the upcoming halving and beyond,” Salman Khan, Marathon’s Chief Financial Officer, added. In an effort to diversify its operations beyond crypto mining, Marathon Digital recently announced its incubation and development of a Bitcoin layer-2 sidechain platform called Anduro on February 28.
Market Performance and Industry Landscape
Despite the impressive earnings report, Marathon Digital’s shares experienced a 6.7% decline in after-hours trading on February 29, falling to $28.95. Nevertheless, the company’s stock has witnessed a remarkable surge of over 300% in the past 12 months. Riot Platforms also saw its total revenues reach an all-time high of $281 million, indicating the robust performance of Bitcoin miners in the industry.
Industry Outlook and Challenges
Leading cryptocurrency miners are bracing themselves for the challenges ahead as the mining industry prepares for a major transformation with the 2024 Bitcoin halving event.