Marathon Digital Reports 229% Increase in Sales in 2023

Marathon Digital Holdings Inc. (NASDAQ: MARA), a prominent player in the Bitcoin mining space, reported a notable turnaround in its business fortunes for the fiscal year ended December 31, 2023. Bitcoin mining operations at scale have revealed record revenues of $388 million in 2023, a 229% jump from the previous year.

2023 proved to be a watershed year for Marathon, with net income of $261.2 million, or $1.06 per diluted share, reversing the prior year’s net loss of $694 million, or $(6.12) per diluted share. Adjusted EBITDA also reflected this positive trend, improving to $419.9 million compared to a loss of $543.4 million in 2022. This improvement is primarily due to a significant increase in Bitcoin production, which increased by 210% to a record 12,852 BTC. Average Bitcoin price rises.

Marathon Chairman and CEO Fred Thiel expressed satisfaction with this year’s performance, highlighting the company’s success in revitalizing its fleet and improving operational efficiency. This operational success is reflected in the fact that the company’s active hash rate has increased by 253% to 24.7 exahashes per second (EH/s), and vehicle efficiency has improved to 24.5 joules per terahash.

The company’s financial strength was further strengthened by a 56% reduction in debt from $748 million to $331 million, a 21% discount to par, resulting in cash savings of $101 million, or $0.55 per share. Unlimited cash and cash equivalents, combined with Bitcoin holdings, amount to $997 million as of the end of December 2023.

Marathon’s expansion of its mining portfolio was another highlight of the year, with the acquisition of two data centers, increasing its total mining capacity to over 900 megawatts. This expansion puts the company in a strategic position to directly own 45% of the sites in its portfolio. The company’s mining operations currently span 11 sites across three continents, demonstrating the scale and global reach of Marathon’s operations.

By 2024 and beyond, Marathon has set an ambitious goal of increasing its hash rate to approximately 35 to 37 exahashes. By the end of 2025, the company plans to double its current capacity to 50 Exahash, with orders already placed for 22 Exahash and an option to add an additional 23 Exahash.

The fourth quarter of 2023 reflected its full-year success, with net income increasing to $151.8 million ($0.66 per diluted share). This was a significant jump from the net loss of $391.6 million, or $3.13 per diluted share, in the prior-year period. Revenue for the quarter increased 452% to $156.8 million, driven by a 172% increase in Bitcoin production and a higher average Bitcoin price.

The company’s earnings webcast and conference call held on February 28, 2024 provided investors with additional insight into its financial results and operating strategy.

Marathon Digital Holdings’ remarkable turnaround and record-breaking performance in 2023 demonstrates the resilience and adaptability of the cryptocurrency mining industry, which has faced numerous challenges in recent years. The results of the marathon could serve as an indicator of the sector’s potential and the growing mainstream acceptance of cryptocurrency-related businesses.

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