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Marathon Digital shares slip 3% on wider-than-expected loss

EditorRachael Rajan
Published 12/11/2024, 21:38
MARA
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NEW YORK - Marathon Digital Holdings (NASDAQ:MARA) reported a wider-than-expected loss for the third quarter of 2024, sending its shares down 3.45% in after-hours trading.

The cryptocurrency mining company's revenue also fell short of analyst estimates, despite a significant year-over-year increase.

Marathon Digital posted a net loss of $125 million, or -$0.42 per share, for the quarter ended September 30, 2024. This was $0.09 worse than the analyst estimate of -$0.33 per share. Revenue for the quarter came in at $131.65 million, missing the consensus estimate of $142.69 million, but representing a 35% increase YoY.

The company's bitcoin production decreased 41% YoY to 2,070 BTC, despite a 93% YoY increase in energized hash rate to 36.9 EH/s. Marathon

Marathon Digital reported positive adjusted EBITDA of $21.8 million, compared to negative $21.3 million in Q3 2023. The company's bitcoin holdings grew to 26,747 BTC at quarter-end, a 45% increase from the previous quarter. During Q3, Marathon mined 2,070 BTC and purchased an additional 6,210 BTC, partly funded by a $300 million convertible senior notes offering.

The company also announced the acquisition of a 222 MW mining site in Ohio for $270,000 per MW and secured a greenfield site development of 150 MW, expanding its total mining capacity by 372 MW. Additionally, Marathon launched a 25 MW micro data center operation to utilize excess flared gas for electricity generation at co-located data centers.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

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