đ„đ„đ„ #Marathon Digital Posts $200 Million Quarterly Loss Amid #BitcoinMining Sector Woes
Marathon Digital Holdings Reports Significant Q2 Loss Amid Bitcoin Halving Impact
#Q2 Financial Performance
- Marathon Digital Holdings reported a substantial Q2 net loss of $199 million ($0.72 per share), up from a $9 million loss in Q2 2023. The loss was attributed to the Bitcoin halving event, which reduced transaction processing rewards by half, and operational challenges. Marathonâs share price dropped 7.8% to $18.14 amidst a broader tech stock decline.
Contributing Factors
- A $148 million fair market value drop in digital assets was a major factor. Analysts had predicted an EPS of -$0.19, but Marathon missed this by $0.53. EPS measures profit per share, with higher values indicating better profitability.
Operational Challenges
- Bitcoin production decreased by 30% to 2,058 $BTC due to the halving, increased global hash rates, and equipment failures. CEO Fred Thiel noted issues at the Ellendale site and intensified competition but mentioned remediation efforts and achieving a record-high hash rate of 31.5 exahash per second.
Revenue Growth and Challenges
- Revenue rose by 78% to $145 million due to a higher average Bitcoin price and new hosting services. However, lower production volumes and fair value losses offset these gains.
Industry-Wide Impact
- Marathon's challenges reflect broader industry trends, with Riot Platforms also reporting significant losses and decreased Bitcoin production following the halving event.
Source - decrypt.co
