Marathon Digital, a leading Bitcoin mining company in the United States, experienced a significant increase in revenue in 2023, resulting in a profitable year. However, the company’s stock faced a slight decline after the release of its fourth-quarter revenue report.
On February 28, Marathon Digital published its earnings report for the fourth quarter and the entire year. The report revealed that the company achieved a record-breaking revenue of $387.5 million in 2023, marking a 229% increase compared to the previous year. CEO Fred Thiel expressed satisfaction with the company’s performance, stating, “2023 was a remarkable year for Marathon, as we successfully activated our fleet of mining rigs and enhanced our overall performance.”
The fourth-quarter revenue also saw significant growth, surging by 452% to reach $156.8 million. This surpassed analyst expectations and showed a substantial improvement from the $28.4 million revenue generated in the fourth quarter of 2022. Analysts had predicted a quarterly revenue of $148.8 million.
The surge in revenue was driven by a 172% increase in Bitcoin production year-over-year, combined with a doubling of the average BTC price during the period. The company sold 56% of the Bitcoin it produced in the quarter to cover operational costs.
Furthermore, Marathon Digital witnessed a positive turnaround in its adjusted EBITDA. In the fourth quarter of 2023, the company reported an adjusted EBITDA of $260 million, compared to a loss of $374 million in the same quarter of 2022.
In terms of Bitcoin production, Marathon achieved a record increase of 210%, mining a total of 12,852 BTC in 2023. Additionally, the company’s hash rate, a measure of its mining power, experienced a remarkable growth of 253%, reaching 24.7 EH/s (exahashes per second) in 2023, up from 7.0 EH/s in the previous year.
During the company’s earnings call, CEO Fred Thiel expressed his optimism about Marathon’s future, stating, “While 2023 was a remarkable year for Marathon, we are more confident than ever about our future prospects.” Chief Financial Officer Salman Khan also added, “We entered 2024 with a strong financial position that positions us well for the upcoming halving and beyond.”
Despite the positive earnings report, Marathon Digital’s stock experienced a 6.7% decline, falling to $28.95 in after-hours trading on February 29. However, it is worth noting that the company’s shares have surged by over 300% in the past year.
In addition to its mining activities, Marathon recently announced its foray into the development of a Bitcoin layer-2 sidechain platform called Anduro. This diversification reflects the company’s commitment to exploring new avenues within the crypto industry.
Overall, Marathon Digital’s impressive financial performance in 2023 showcases its position as a key player in the Bitcoin mining sector. Despite the short-term decline in stock value, the company remains optimistic about its future prospects and continues to expand its presence in the cryptocurrency market.