FORT LAUDERDALE - Marathon Digital (NASDAQ:MARA) Holdings, Inc. (NASDAQ:MARA), a global leader in digital asset compute, has reported substantial growth in its financial results for the first quarter ended March 31, 2024.
The company's net income soared by 184% to a record $337.2 million, translating to $1.26 per diluted share, compared to $118.7 million, or $0.72 per diluted share, in the same quarter the previous year. This increase was primarily attributed to favorable mark-to-market adjustments of digital assets under new FASB fair value accounting rules.
Despite the impressive earnings growth, the company's revenue for the quarter was $165.2 million, a 223% increase from the $51.1 million reported in the first quarter of 2023, but fell short of the analyst consensus estimate of $181.11 million. The revenue growth was driven by a significant rise in the average price of bitcoin mined and the introduction of hosting services following the acquisition of GC Data Center Equity Holdings, LLC. However, Marathon faced operational challenges, including equipment failures and weather-related curtailments, which impacted bitcoin production.
Adjusted EBITDA also saw a remarkable increase, jumping 266% to a record $528.8 million from $144.5 million YoY. The company produced 2,811 BTC during the quarter, a 28% increase from the previous year, and energized hash rate increased by 142% to 27.8 EH/s from 11.5 EH/s YoY. Marathon's strategy to hold onto the bitcoin it produced, combined with the positive momentum of bitcoin's price, contributed to the record financial results.
Fred Thiel, Marathon’s chairman and CEO, highlighted the company's operational achievements and future outlook, stating, "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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