Marathon Digital Reports 670% Revenue Spike in Q3 2023 as Bitcoin Production and Prices Surge

Bitcoin mining giant Marathon Digital (NASDAQ: MARA) reported a considerable revenue spike for Q3 2023. According to a press release published Wednesday, Marathon Digital announced a 670% increase in quarterly revenue, from $12.7 million in Q2 to $97.8 million in Q3.

Marathon said the increase was due to several factors, including an increase in Bitcoin production for Q3, which rose by 467%. The press release also said the revenue for the quarter was positively impacted by Bitcoin prices, which were 32% higher.

Other figures include $31.7 million in quarterly gains for Q3 2023 as Marathon Digital sold 66% of all the Bitcoin it produced, channeling funds to operating costs. In addition, Marathon’s adjusted EBITDA (earnings before interest, taxes, depreciation, and amortization) was $43.7 million, much higher than a $6.1 million loss in the same period last year.

Marathon said this increase was primarily because of improved profitability. Marathon Digital’s total margin, excluding depreciation and amortization, increased from a $1.1 million loss in Q3 2022 to $38.2 million in Q3 2023.

Figures also include an increase in the number of average Bitcoin produced per day, up 19% from 2,926 in Q2 2023 to 3,490 in Q3. The third quarter figure also represents a 467% increase from the 616 recorded in Q3 2022.

According to Marathon Digital’s Chairman and CEO Fred Thiel, the company grew its energized hash rate by 8% quarter over quarter to 19.1 exahashes. Also, significantly improved optimization efforts led to higher uptime, which spiked Marathon’s operational hash rate in the US to 14.2 exahashes, increasing 18% from Q2.

Marathon Projection for the Period after Q3 2023

Thiel also spoke about Marathon taking proactive steps for the rest of the year and next:

“In preparation for next year’s halving, we took proactive measures to strengthen our financial position during the quarter. The $417 million note exchange completed in September reduced our long-term debt by 56% and captured a total of approximately $101 million in cash savings for our shareholders. For the first time in two years, our combined cash and Bitcoin holding exceeded our debt at the quarter’s end.”

Thiel also projects that Marathon Digital expects to hit 26 exhashes by the end of 2023, and hopes to grow its hash rate by 30% in 2024.

According to MarketWatch data, Marathon Digital’s shares are at $9.24 in premarket trading, after climbing 7.84% from its previous close at $8.55. In the last month, MARA has climbed nearly 10%. Interestingly, the stock has spiked 150% since January.

Last quarter, Marathon Digital missed estimates for earnings and revenue. Analysts polled by FactSet had estimated a loss per share of $0.06 and $83.4 million in revenues. However, the company reported a $0.13 loss per share, and $81.8 million in revenues. Although the revenue did no t meet analysts’ estimates, it was an impressive increase from the $24.9 million recorded for the same quarter last year. In addition, Marathon Digital’s Bitcoin production jumped by 314%, which helped to accommodate the 14% plunge in Bitcoin price at the time.

In response to the company’s report, MARA shares fell about 2.29% in after-hours trading. However, at the time, MARA’s year-to-date figure was a 359% gain.

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2023-11-09 14:14