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.

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.