Bitcoin Ecosystem Firm Marathon Digital Holdings Releases Q2 2023 Results

Marathon Digital Holdings, Inc. (NASDAQ: MARA), which claims to be a leader in supporting and securing the Bitcoin ecosystem, reported its financial and operational results for the quarter ended June 30, 2023.

Second Quarter 2023 Financial Results

The company recorded “a net loss of $21.3 million, or $0.13 per share, during the three months ended June 30, 2023, compared to a net loss of $212.6 million, or $1.94 per share, in the same period last year.”

Revenues reportedly “were $81.8 million for the quarter, significantly above second quarter 2022 revenues of $24.9 million, as a 314% increase in bitcoin production more than offset 14% lower average bitcoin prices during the current year period.”

As noted in a release, gains “on sale of bitcoin were $23.4 million in the quarter as the Company sold 63% of the bitcoin produced in the quarter to fund operating costs.”

As mentioned in the update, results also “benefited from lower impairment in the carrying value of digital assets of $8.4 million, as bitcoin prices were generally rising during the current-year period.” In addition, year-ago comparisons benefited “from the absence of a $79.7 million loss on digital assets held in an investment fund and a $54.1 million gain on the sale of equipment in the prior year.”

Adjusted EBITDA “was $25.6 million in the current year period compared with a loss of $167.1 million in the prior year period.” In addition to the gains and lower impairment noted above, total margin “excluding depreciation and amortization improved to $26.5 million, up from $8.2 million in the year-ago period.”

Fred Thiel, Marathon’s chairman and CEO, stated:

“After a strong start to the year, we accelerated our progress in the second quarter by significantly growing our hash rate and improving our efficiency. In Q2, we grew our energized hash rate 54% from 11.5 to 17.7 exahashes. By growing our hash rate faster than the rest of the network and improving our uptime, we also increased our bitcoin production. We produced a record 2,926 bitcoin during the second quarter, representing approximately 3.3% of the Bitcoin network rewards available during the period.”

As noted in the update:

“In addition to our operational progress, we also improved our financial position during the quarter. We exited the quarter with $113.7 million in unrestricted cash and cash equivalents and approximately 12,538 bitcoin, the market value of which was approximately $380 million on June 30. Although our cash position decreased by $11.2 million from Q1, we increased our unrestricted bitcoin holdings by 1,072 bitcoin, the market value of which was approximately $32.7 million at June 30.”

As stated by the firm’s management:

“With the progress we reported in July plus additional installations in early August, our domestic installed hash rate has now reached our 23 exahash target. All miners are installed in Garden City, and our hosting provider has indicated that energization is imminent. Looking beyond 23 exahashes, our joint venture in Abu Dhabi is already hashing and producing bitcoin. We look forward to further growing our position as a leader in the Bitcoin mining space in the quarters ahead.”

As covered, Marathon is a digital asset technology company “that focuses on supporting and securing the Bitcoin ecosystem.” The company claims that it is currently in the process of “becoming one of the largest and most sustainably powered Bitcoin mining operations in North America.”

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