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News

Marathon Digital Quarterly Losses Soar With 20,000 BTC In Balance

3 hours ago - Around 2 mins mins to read

Key Points:

  • Marathon Digital quarterly net loss reached $199 million, missing revenue estimates due to operational issues and the Bitcoin halving.
  • The company’s Bitcoin output fell 30% to 2,058 BTC amid equipment failures and increased global hash rates.
Marathon Digital reported a huge loss for the second quarter of 2024 due to operational challenges and the recent halving of Bitcoin.
Marathon Digital Quarterly Losses Soar With 20,000 BTC In Balance

Read more: Marathon Gears Up For Halving With New Machines Worth $87M

Marathon Digital Quarterly Loss Was $199 Million

The Marathon Digital quarterly revenue came in at $145.1 million, missing the FactSet estimate of $157.9 million. Those results were hampered by equipment failures and maintenance issues at its Ellendale site, as well as a significant drop in Bitcoin production. It is reported that CEO Fred Thiel said that these headwinds, like an increased global hash rate and a halving event this April, added further burden.

Even at an all-time high mining power of 31.5 exahash per second, Bitcoin production for Marathon slid 30% to 2,058 BTC from 2,926 BTC year-over-year. Reduced production contributed to a net loss of $199 million, or $0.72 per diluted share, compared with a $9 million loss in Q2 2023. The adjusted EBITDA swung into a loss of $85.1 million from a gain of $35.8 million a year earlier.

Company Shifts Strategy, Boosts Bitcoin Holdings to Over 20,000 BTC

Following operational strains that squeezed the company, Marathon sold 51% of its mined Bitcoin to cover the costs. This strategy, however, was shifted. Just recently, $100 million worth of Bitcoin were acquired by the company, pushing its reserves above 20,000 BTC.

Marathon Digital quarterly results follow a miss in Q1, where revenues surged 223% to $165.2 million but still fell short of estimates. The ongoing impact of the halving and rising global hash rates continues challenging the mining industry.

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.

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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 Digital Quarterly Losses Soar With 20,000 BTC In Balance

Key Points:

  • Marathon Digital quarterly net loss reached $199 million, missing revenue estimates due to operational issues and the Bitcoin halving.
  • The company’s Bitcoin output fell 30% to 2,058 BTC amid equipment failures and increased global hash rates.
Marathon Digital reported a huge loss for the second quarter of 2024 due to operational challenges and the recent halving of Bitcoin.
Marathon Digital Quarterly Losses Soar With 20,000 BTC In Balance

Read more: Marathon Gears Up For Halving With New Machines Worth $87M

Marathon Digital Quarterly Loss Was $199 Million

The Marathon Digital quarterly revenue came in at $145.1 million, missing the FactSet estimate of $157.9 million. Those results were hampered by equipment failures and maintenance issues at its Ellendale site, as well as a significant drop in Bitcoin production. It is reported that CEO Fred Thiel said that these headwinds, like an increased global hash rate and a halving event this April, added further burden.

Even at an all-time high mining power of 31.5 exahash per second, Bitcoin production for Marathon slid 30% to 2,058 BTC from 2,926 BTC year-over-year. Reduced production contributed to a net loss of $199 million, or $0.72 per diluted share, compared with a $9 million loss in Q2 2023. The adjusted EBITDA swung into a loss of $85.1 million from a gain of $35.8 million a year earlier.

Company Shifts Strategy, Boosts Bitcoin Holdings to Over 20,000 BTC

Following operational strains that squeezed the company, Marathon sold 51% of its mined Bitcoin to cover the costs. This strategy, however, was shifted. Just recently, $100 million worth of Bitcoin were acquired by the company, pushing its reserves above 20,000 BTC.

Marathon Digital quarterly results follow a miss in Q1, where revenues surged 223% to $165.2 million but still fell short of estimates. The ongoing impact of the halving and rising global hash rates continues challenging the mining industry.

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.
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