Marathon Digital Holdings Reports Resilient Q1 2023, Despite Bitcoin Price Fluctuations
Marathon Digital Holdings, Inc. (NASDAQ: MARA), a leading company in the Bitcoin ecosystem, reported its Q1 2023 financial and operational results, showing resilience despite the fluctuating Bitcoin market.
The company recorded a net loss of $7.2 million, or $0.05 per share, in the first quarter ended March 31, 2023, a significant improvement compared to the net loss of $12.9 million, or $0.12 per share, reported in the same period in 2022. Although the revenues slightly dipped to $51.1 million compared to $51.7 million in the prior year, a 74% increase in Bitcoin production was noted, even as it was offset by lower Bitcoin prices in the current year period.
Marathon registered a gain of $17.6 million on the sale of Bitcoin in the quarter and observed lower impairments in the carrying value of its digital assets ($11.5 million) due to rising Bitcoin prices. However, lower total margin and increased tax expenses affected earnings.
In terms of Bitcoin mining, Marathon produced a record 2,195 Bitcoin during the first quarter, a 74% increase year-over-year. The average Bitcoin produced per day increased from 14.0 to 24.4. The operational hash rate also showed a significant jump from 3.9 exahashes to 11.5 exahashes, a 195% increase year-over-year, and the installed hash rate was at 15.4 exahashes.
CEO Fred Thiel commented positively on the company’s resilience and growth in the face of industry challenges. He highlighted Marathon’s financial progress, including a $12 million increase in cash position, a $50 million reduction in debt, and an increase in unrestricted Bitcoin holdings by 3,132 Bitcoin. The company closed the quarter with approximately $124.9 million in unrestricted cash and cash equivalents, and 11,466 Bitcoin, valued at approximately $326.5 million on March 31.
Marathon remains on track to reach its 23 exahash goal by the middle of the year, positioning itself as one of the largest, most energy efficient, and most technologically advanced Bitcoin mining operations globally.
