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News

Marathon Increases Revenue Over 70% In Q1 Thanks To Bitcoin Positives

May 11, 2023 - Around 3 mins mins to read

Key Points:

  • Marathon Digital’s loss and revenue for the first quarter increased significantly over the previous quarter, mainly to the Bitcoin rise.
  • Revenue of $51.1 million exceeded the estimate of $48.8 million.
  • The company confirmed that it had received an additional summons from the SEC regarding its operations at a data center in Montana.
On May 10, Marathon Digital Holdings released quarterly results for its bitcoin mining activities.
Marathon Increases Revenue Over 70% In Q1 Thanks To Bitcoin Positives
Marathon Increases Revenue Over 70% In Q1 Thanks To Bitcoin Positives 2

The company reported a narrower-than-expected first-quarter loss per share, thanks to a rising Bitcoin (BTC) price and increased production, which helped the Florida-based company return to profitability.

Fred Thiel, Marathon’s chairman and CEO, stated:

“After weathering a tumultuous 2022 that tested the resilience of our entire industry, this year is off to a strong start as we grew our hash rate, reduced our cost to mine, and improved our balance sheet during the first quarter.”

According to FactSet statistics, Marathon reported a net loss of $0.05 per share, compared to an average forecast of $0.08. According to a Wednesday filing, the loss was $3.14 in the previous quarter and $0.12 in the same period in 2022.

Marathon reported $51.1 million in revenue in the first quarter of 2023, down from $51.7 million in the first quarter of 2022. This quarter, the firm reported a net loss of $7.2 million, compared to a net loss of $12.9 million the previous year. In Q1, the firm generated 2,195 BTC, a 74% increase over Q1 2022 and a 41% increase over Q4 2022. The company’s hash rate climbed 69% to 15.4 EH/s from 9.1 EH/s in Q4 2022.

Marathon also said that it made $17.6 million from the sale of Bitcoin. Previous rumors said that the company would sell Bitcoin to cover operational expenses. On March 31, it had $124.9 million in unrestricted cash and cash equivalents and 11.446 Bitcoin worth $326.5 million.

The company also said that it got another subpoena from the Securities and Exchange Commission (SEC), which is investigating related-party transactions that may have violated federal securities law, among other things.

The Commission took similar action in November 2021 and again last month. The SEC’s move today emphasizes the wave of rigorous regulation that crypto firms in the United States are facing. Marathon said it is registered with the inquiry.

The company published its monthly results and announced plans to launch a joint mining operation with Zero Two in Abu Dhabi.

DISCLAIMER: The information on this website is provided as general market commentary and does not constitute investment advice. We encourage you to do your research before investing.

Join us to keep track of news: https://linktr.ee/coincu

Harold

Coincu News

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Marathon Digital

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Author

Harold

With a passion for untangling the complexities of the financial world, I've spent over four years in financial journalism, covering everything from traditional equities to the cutting edge of venture capital. "The financial markets are a fascinating puzzle," I often say, "and I love helping people make sense of them." That's what drives me to bring clear and insightful financial journalism to the readers of Coincu.
News

Marathon Increases Revenue Over 70% In Q1 Thanks To Bitcoin Positives

Key Points:

  • Marathon Digital’s loss and revenue for the first quarter increased significantly over the previous quarter, mainly to the Bitcoin rise.
  • Revenue of $51.1 million exceeded the estimate of $48.8 million.
  • The company confirmed that it had received an additional summons from the SEC regarding its operations at a data center in Montana.
On May 10, Marathon Digital Holdings released quarterly results for its bitcoin mining activities.
Marathon Increases Revenue Over 70% In Q1 Thanks To Bitcoin Positives
Marathon Increases Revenue Over 70% In Q1 Thanks To Bitcoin Positives 4

The company reported a narrower-than-expected first-quarter loss per share, thanks to a rising Bitcoin (BTC) price and increased production, which helped the Florida-based company return to profitability.

Fred Thiel, Marathon’s chairman and CEO, stated:

“After weathering a tumultuous 2022 that tested the resilience of our entire industry, this year is off to a strong start as we grew our hash rate, reduced our cost to mine, and improved our balance sheet during the first quarter.”

According to FactSet statistics, Marathon reported a net loss of $0.05 per share, compared to an average forecast of $0.08. According to a Wednesday filing, the loss was $3.14 in the previous quarter and $0.12 in the same period in 2022.

Marathon reported $51.1 million in revenue in the first quarter of 2023, down from $51.7 million in the first quarter of 2022. This quarter, the firm reported a net loss of $7.2 million, compared to a net loss of $12.9 million the previous year. In Q1, the firm generated 2,195 BTC, a 74% increase over Q1 2022 and a 41% increase over Q4 2022. The company’s hash rate climbed 69% to 15.4 EH/s from 9.1 EH/s in Q4 2022.

Marathon also said that it made $17.6 million from the sale of Bitcoin. Previous rumors said that the company would sell Bitcoin to cover operational expenses. On March 31, it had $124.9 million in unrestricted cash and cash equivalents and 11.446 Bitcoin worth $326.5 million.

The company also said that it got another subpoena from the Securities and Exchange Commission (SEC), which is investigating related-party transactions that may have violated federal securities law, among other things.

The Commission took similar action in November 2021 and again last month. The SEC’s move today emphasizes the wave of rigorous regulation that crypto firms in the United States are facing. Marathon said it is registered with the inquiry.

The company published its monthly results and announced plans to launch a joint mining operation with Zero Two in Abu Dhabi.

DISCLAIMER: The information on this website is provided as general market commentary and does not constitute investment advice. We encourage you to do your research before investing.

Join us to keep track of news: https://linktr.ee/coincu

Harold

Coincu News

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