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Marathon Digital Holdings stock went slightly down even after the company reported a 452% revenue spike in the recent quarter
Marathon Digital Holdings recently announced its results for the quarter and full year ending on December 31 2023 after the market closed on February 28th. Both periods showed increases in revenue and earnings for Marathon.
Marathon Digital Holdings Earnings
In Q4, earnings came in at $151.8 Million, or 66 cents per share. This was a significant improvement from Q4 2022, when Marathon reported a net loss of $391.6 Million ($3.13 per share). Revenue increased by 229% to $388 Million for all of 2023. During Q4, revenue was $156.8 Million, up 452% compared to the prior year’s quarter.
The net loss reported in 2022 was $694 Million ($6.12 per share), but full-year earnings came in at $261.2 Million, or $1.06 per share, a tremendous swing. Despite the company-specific news that caused Marathon’s recent decline, On closer examination, the shares have sold off post-earnings, but a closer look suggests otherwise.
Many investors have sold off Marathon Digital Holdings (NASDAQ:MARA) following the surge in price due to rising Bitcoin (BTC-USD) prices. The reason for this is the crypto miner’s latest earnings release, which has resulted in a decline of nearly 9% in MARA stock. This happened because the street was expecting way more than what the company had to offer.
The Take of the Management
Marathon’s CEO and chairman, Fred Thiel said that 2023 was a record-breaking year for Marathon, during which they achieved their primary objectives of energizing their fleet of previously purchased mining rigs and optimizing the company’s performance.
The company’s production capacity increased partly due to its mining fleet efficiency improving by 21%, going from 30.9 J/TH (joules per terrahash) to 24.5. In total, the company produced 12,852 Bitcoin once all technical indicators were accounted for.
Some short-term speculators and long-term investors may have sold MARA stock post-earnings, but Marathon Digital’s updates to guidance are promising. Management’s remarks regarding increases to the company’s overall hashrate during this year and the next indicate that Marathon’s hash rate could climb to between 35 and 37 exahash, or an up to 49.8% increase compared to 2022. By 2025, the company-wide hash rate could hit 50 exahash, which is double 2023 levels.
The forthcoming halving event is not a headwind, but another powerful catalyst for shares. Despite the impact it will have on production, the halving, combined with other developments, has resulted in a significant increase in BTC prices. Additionally, Marathon has been shifting production to lower-cost jurisdictions, which will enable it to produce more BTC at a lower-fixed cost, likely resulting in tremendous future profitability.
Summary
After releasing its annual reports Marathon Digital Holdings (NASDAQ; MARA) experienced a 9% decline in its stock price. Despite the CEO’s statement highlighting a record-breaking year for the company in 2023, investors were disappointed with the results.
Disclaimer
The views and opinions stated by the author, or any people named in this article, are for informational purposes only. They do not establish financial, investment, or other advice. Investing in or trading in stocks, cryptos or any other related indexes comes with a risk of financial loss.
Amanda Shinoy is one of the few women in the space invested knee-deep in crypto. An advocate for increasing the presence of women in crypto, she is known for her accurate technical analysis and price prediction of cryptocurrencies. Readers are often waiting for her opinion about the next rally. She is a finance expert with an MBA in finance. Quitting a corporate job at a leading financial institution, she now engages herself full-time into financial education for the general public.
