[{"category":{"name":"Trending News","exported_url":"trending-news"},"id":"7f38cb1e-859d-4717-a3df-e296610b64dd","updated_at":"2024-05-10T05:00:59.601391+00:00","account":{"firstName":"Marigold","lastName":"Vance"},"description":"Due to operational difficulties, Marathon Digital was under modest pressure after releasing their Q1 earnings ","sapo":"Failing to meet the Q1 revenue expectations, Marathon Digital was under modest pressure. However, the compay reiterated its 2024 hash rate growth guidance. ","title":"Bitcoin miner Marathon Digital records first-quarter earnings, misses revenue estimates","content":"

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Marathon Digital or MARA, one of the world's biggest bitcoin miners, was missing consensus revenue estimates for the 1st quarter because of operational difficulties it encountered in the course of the period.

In the first three months of this year, it had only 2,811 bitcoins mined, a drop of 34% from the previous quarter. The company's net income soared by 184% to a record $337.2 million, translating to $1.26 per share, at first glance easily topping Wall Street estimates of $0.02, but not comparable to forecasts of $181.11 million as the company adopted newly-approved FASB (fair value accounting rules). This increased significantly due to a growth in average Bitcoin mining prices and the introduction of hosted services. However, as a result of the operational difficulties that it encountered, such as equipment failure and interruptions due to weather conditions affecting bitcoin production, Marathon has been hard hit.

"Bitcoin production, and therefore revenues, generated during the quarter was negatively impacted by unexpected equipment failures, transmission line maintenance, and higher than anticipated weather-related curtailments at Garden City and other sites during the quarter," the company said in a statement on Thursday.

Marathon’s Q1 2024 Earnings Release

Source: Marathon’s Q1 2024 Earnings Release-@MarathonDH X

Fred Thiel, Marathon’s chairman and CEO, highlighted the company's operational achievements and future prospects:

"Despite the operational challenges we faced in the first quarter, we were able to leverage our agility to redistribute equipment to newly acquired sites amidst ongoing repairs. With the expansion capacity we have gained from our recent acquisitions, with 45 additional exahash of capacity available to us between current orders and options, and with $1.6 billion of liquidity, we are now targeting 50 exahash of energized hash rate by the end of 2024 and additional growth in 2025."

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Bitcoin miner Marathon Digital records first-quarter earnings, misses revenue estimates

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