Marathon Digital, a Bitcoin mining firm, encountered operational hurdles but managed to achieve record financial results in the first quarter of 2024, according to its quarterly earnings report.
During this period, Marathon produced 2,811 Bitcoins, marking a decrease of 33.73% compared to the last quarter of 2023.
Despite this decline in production, the company reported a remarkable increase in revenues, which surged by 223% to $165.2 million from $51.1 million in the first quarter of 2023.
Additionally, Marathon's energized hash rate, which measures the computational power of the blockchain network, saw a substantial increase of 142% to 27.8 EH/s from 11.5 EH/s in the first quarter of 2023.
Marathon Digital, trading under the ticker symbol “MARA,” witnessed a 2.19% decrease in its stock price, closing at $19.56 at the end of Thursday’s market session.
Fred Thiel, Marathon’s chairman and CEO, noted the firm's accomplishments in expanding its digital asset compute portfolio and overcoming operational challenges to achieve record financial results. Thiel highlighted the acquisition and integration of three new sites within a short span of four months, effectively doubling the firm's portfolio to 1.1 gigawatts of capacity, with 54% under Marathon's direct ownership and operation.
Furthermore, Marathon secured its first paying customers for MARA firmware and began building a sales pipeline for its two-phase immersion system.
Despite facing operational challenges, Marathon leveraged its agility to redistribute equipment to newly acquired sites while conducting ongoing repairs. This, combined with their HODL (Hold On for Dear Life) strategy, enabled Marathon to capitalize on Bitcoin's positive momentum and achieve record financial performance for the quarter.
Marathon reported robust financial figures, including a topline of $165.2 million, record net income of $337.2 million, and adjusted EBITDA of $528.8 million.
The production decline experienced by Marathon is in line with the trend observed among other public mining companies earlier this year. Several companies reported decreases in Bitcoin production following the halving event, albeit temporarily mitigated by the robust Bitcoin fee market.
Notably, Hut 8, another prominent Bitcoin mining company, reported a significant decline in proprietary production for April, with a 36% decrease compared to March.
May 2024, Cryptoniteuae