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.
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.
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