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Marathon Digital Q1 2024 Report Out; Missed Revenue Expectations?

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Marathon Digital, Bitcoin’s biggest miner by Market cap, has just released its Q1 2024 revenue report, which missed revenue expectations.   

Marathon Digital (MARA), one of the prominent players in the Bitcoin (BTC) mining sector, experienced a revenue decline in Q1 2024 revenue reports. Operational challenges and a drop in BTC production from 6% to 12% for April are some major challenges faced by the company.  

What Did Marathon Digital Achieve In Q1 2024?

On May 9, Marathon Digital released its first earning report for 2024, which didn’t meet the expectations in terms of revenue. A drop in BTC production amid Bitcoin halving is emerging as the key reason behind the revenue decline. 

For Q1 2024, the reported revenue was around $165,198 Million, which is over 9.26% down from the estimated $182.061 Million. However, the report outperformed in earnings per share, hitting $1.454 per share, a surprise of $1.434 per share compared to estimated earnings. 

Uncovering the Q1 2023 revenue report, Marathon Digital reported $51.132 Million, around 4.74% up from the estimated revenue of $48.817 Million. Comparing both quarters, the report showcases a revenue surge of 223%. 

In the same way, net income increased 184% to $337.2 Million, or $1.26 per diluted share, in Q1 2024 from $118.7 Million, or $0.72 per diluted share, in Q1 2023. However, the operational challenges and BTC halving impacted the company’s performance. 

“During the first quarter of 2024, we doubled the size of our portfolio of digital asset computing, launched our first products and services to support the Bitcoin ecosystem, and we battled against operational challenges to produce record financial results,” said Fred Thiel, Marathon Digital’s CEO. 

Marathon Digital VS Bitcoin: The Mining History 

The company is heavily engaged in mining BTC coins. At the press time, BTC was trading at $63,175.14, showcasing a 2.68% intraday surge with a market cap of $1,246,113,796,952. 

The mining company produced over 2,811 BTCs in Q1 2024. It mined 28% more BTCs than in Q1 2023 when approximately 2,195 BTC coins were produced. However, the number is 34% lower compared to Q4 2023, when the company produced around 4,242 BTC.     

Nevertheless, most BTC mining companies, including Bitfarms, Cipher, CleanSpark, Core Scientific, Riot, and Terawulf, are experiencing a downturn in operations amid the BTC halving event.    

Marathon Digital Joins S&P600; What’s Next?

Marathon Digital experienced a significant surge in its stock value (MARA), climbing by 17.98% in Monday’s trading period. This uptick represented a substantial rebound, pushing the stock toward the $20 mark and overturning most of its April downturn, which exceeded 90%.

This remarkable incline occurred after the company’s listing on the S&P 600 on 3 May. The S&P 600 index lists the smallest publicly traded corporations in the U.S. based on their market capitalization.

Marathon Digital Holdings listing on S&P 600 I Source: PR Newswire

To qualify for the S&P SmallCap 600, companies must have a market capitalization ranging from $1 billion to $6.7 billion and demonstrate four consecutive quarters of net profitability.

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