- November 10, 2023
- Posted by: [email protected]
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Marathon Digital Holdings, a prominent player in the Bitcoin mining industry, has unveiled an outstanding financial performance for the third quarter of 2023. The company reported an impressive 670% year-on-year surge in profits, primarily fueled by a nearly five-fold increase in Bitcoin production.
Marathon had $64.1 million net income in the third quarter of 2023, or $0.35 per diluted share. This marks a significant turnaround compared to the same period in the previous year, where the company reported a net loss of $72.5 million or a loss of $0.62 per share. Revenues for Q3 2023 reached $97.8 million, showcasing substantial growth from the $12.7 million reported in the same quarter of 2022.
The remarkable improvement in performance is attributed to several key factors. A notable 467% surge in Bitcoin production played a pivotal role, skyrocketing from 6.7 mined BTC per day in Q3 2022 to an impressive 37.9 BTC per day in Q3 2023. Additionally, a 32% rise in average bitcoin prices significantly contributed to the company’s success.
During the third quarter, Marathon successfully mined 3,490 bitcoins, showcasing a substantial increase from the 2,926 mined in the previous quarter and the mere 616 in the same quarter a year ago. The company reported gains of $31.7 million from digital assets, with 66% of the generated bitcoins in the last quarter being sold to cover operating costs.
Marathon’s energized hashrate witnessed a remarkable 403% increase during the same period, emphasizing improved uptime. The U.S. average operational hash rate increased by 18% from the previous quarter to 14.2 exahashes.
The company also reported the initiation of operations at its new facility in Garden City, with full operational status expected later this month. Additionally, preparations are underway to energize its first joint venture and its inaugural international location in the United Arab Emirates (UAE).
Marathon’s CEO and chairman, Fred Thiel, emphasized the “significant progress” that has fortified the company’s balance sheet ahead of the Bitcoin halving event scheduled for April 2024. Thiel highlighted a $417 million note exchange completed in September, reducing long-term debt by 56%.
Looking ahead, Marathon aims to achieve a hash rate of 26 exahashes by the end of 2023 and plans to expand the hash rate by approximately 30% in 2024, following the launch of its 27-megawatt hydro-powered mining venture in Paraguay, announced on November 8.
Despite a positive earnings report, Marathon Digital (MARA) stock faced a 6.9% decline during the regular session on Wednesday. However, in after-hours trading, shares rebounded modestly by 0.8%, showcasing the stock’s overall impressive growth of nearly 140% this year, outperforming the 73% gain in Bitcoin (BTC) prices.
