Marathon reports record revenue growth in 2023 and unveils Bitcoin Layer-2 Anduro.

Bitcoin mining and technology company Marathon Digital reported record growth across multiple categories in its 2023 annual earnings report.

The company also unveiled its development of a layer 2 network for Bitcoin called Anduro to build its flagship cryptocurrency ecosystem.

Fred Thiel, Marathon Chairman and CEO, said:

“2023 was a record year for Marathon, during which we achieved our key objectives of energizing previously purchased mining equipment and optimizing their performance.”

According to the company’s balance sheet, the company mined a record 12,852 Bitcoins during 2023, with a total of 15,126 BTC on its balance sheet as of December 31, 2023.

record earnings

Marathon’s 2023 revenue increased 229% year-over-year, from $117.8 million in 2022 to $387.5 million.

The company’s net income for the year was a record $261.2 million, compared to a net loss of $694 million the year before. Meanwhile, net profit for the fourth quarter of 2023 was $151.8 million.

Diluted EPS for the year was $1.06.

As of December 31, 2023, Marathon holds $357.3 million in unrestricted cash and cash equivalents and 15,126 BTC in unrestricted Bitcoin. This equates to a total value of $997 million at the time.

The company has also experienced significant growth in its operations.

Marathon’s active hash rate increased from 7.0 EH/s in 2022 to 24.7 EH/s in 2023, a growth rate of 253%.

Additionally, vehicle efficiency has improved by 21 percent to 24.5 joules per terahash, and the company has expanded operations to a total capacity of 900 megawatts. Marathon currently operates 11 separate facilities across three continents.

Bitcoin Layer-2 Anduro

Marathon claims that Anduro will allow the creation of multiple Bitcoin sidechains and serve as a programmable application layer.

Marathon said it is currently developing its first two Anduro-based sidechains: Coordinate, aimed at the Ordinals community, and Alys, an Ethereum-compatible chain for tokenizing institutional assets.

Marathon pointed out that both sidechains can be developed further by open source contributors.

The company added that the Anduro sidechain will use a process called merge mining. This will allow participating miners, including Marathon, to mine on the Bitcoin base layer while also profiting from Bitcoin-denominated Anduro sidechain transactions.

The announcement of the sidechain represents a notable shift from Marathon, which has primarily focused on Bitcoin mining since its inception, to Bitcoin development.