Marathon Digital Q2 results miss revenue and earnings forecasts

Crypto mining firm Marathon Digital missed earnings and revenue expectations with its second-quarter 2023 results.

Marathon’s Q2 2023 results on Aug. 8 reported revenues of $81.8 million compared to Zacks Investment Research’s estimate of $83.2 million.

The crypto miner reported a earnings per share net loss of 13 cents compared to Zacks’ estimate of a 3 cents per share loss

Despite missing revenue projections, the mining firm increased its revenue by 228% compared to the second quarter of 2022.

The stronger quarter took Marathon’s 2023 revenue to $132.8 million over the first two quarters, up 73.3% from the first half of 2022.

<em>Marathon&#8217;s revenue figures in 2023 have rebounded after a tough 2022. Source: Marathon Digital</em>

The mining firm partly attributed its revenue increase to producing an average of 32 Bitcoin (BTC) per day — a 314% increase in production compared to the second quarter last year.

June was the toughest month of the second quarter for Marathon, with its BTC production falling 21% from May. The firm attributed the drop to poor weather conditions at its Texas facility.

Marathon’s share price largely remained sideways after market close, recording a 1.65% drop in after-hours trading to around $15.50 per share according to Google Finance.

<em>Marathon&#8217;s share price largely remained sideways after market close. Source: Google Finance</em>

Marathon’s chairman and CEO Fred Thiel said in a press release that the firm significantly grew its hash rate and improved efficiency over the quarter.

Related: Bitcoin production growth and capital strategy guiding Marathon Digital — CEO

“In Q2, we grew our energized hash rate 54% from 11.5 to 17.7 exahashes,” Thiel reported. He added Marathon also increased its Bitcoin production with a record 2,926 Bitcoin mined during the quarter, representing around 3.3% of the network’s rewards over that time.

Marathon reported a $23.4 million gain due to selling 63% of the Bitcoin mined in the quarter, used to fund operating costs. Impairment charges on the value of its held digital assets were $8.4 million.

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Additional reporting by Brayden Lindrea.