Key Points:
For its fourth-quarter profits, Marathon is anticipated to report revenue that is three times more than what it did in the third quarter. The company plans to offer such information when it is appropriate in the future.
After one of the most catastrophic quarters ever for the fledgling sector, the new year’s rebound in bitcoin is reviving several crypto-mining businesses that were on the verge of bankruptcy.
For the first nine months of 2022, Marathon has already recorded a net loss of $280 million on sales of roughly $89 million.
After an investigation from the U.S. Securities and Exchange Commission (SEC), the business stated that it would need to recast a portion of its audited 2021 results and presently unaudited quarterly reports from 2022.
According to an SEC filing, the problem included the company’s method of computing the impairment on digital assets and its judgment that it was functioning as an agent rather than a principal in running a third-party mining pool.
Marathon’s mining capacity increased again in the most recent quarter as a substantial chunk of its gear was transferred from a Montana location to one fueled by wind energy in Texas.
Once debt-financing options dried up and interest payments exceeded cash flows in the quarter, the surge in Bitcoin made it simpler for miners to borrow funds through the stock market.
Miners like Riot Platforms and Marathon Digital Holdings have gained more than 75% apiece after seeing their value decline in 2022, making them among the best-performing US equities this year.
Because the majority of miners lack the funds to deposit sufficient collateral for power purchase agreements, which allow purchasers to lock in a certain energy price for a set period of time, they may be even more exposed to the fluctuations in electricity costs this summer.
DISCLAIMER: The Information on this website is provided as general market commentary and does not constitute investment advice. We encourage you to do your own research before investing.
Join us to keep track of news: https://linktr.ee/coincu
Harold
Coincu News
Data from Coinglass has unveiled staggering figures of liquidated contracts, shaking both seasoned investors and…
Over 84% of the staked Sui token supply is controlled by the founders, raising centralization…
The Coinbase class action lawsuit, echoing a previous case against the exchange, accuses it of…
Tether's CEO, Paolo Ardoino, highlights discrepancies in the Bitfinex data breach, revealing that only a…
Bitfinex data leak allegedly by FSOCIETY includes 2.5TB of exchange data and 400K users' details.…
According to Parsec, Friend Tech v2's launch disappointed many, with 95% users unable to claim…
This website uses cookies.