Marathon Digital Holdings (MARA), a crypto miner, had a bad day at the office after its Q2 performance triggered a stock drop of more than 5% on Friday 2 August 2024.
Marathon’s Q2 Results Trigger Stock Drop
The company’s reported revenue came in at $145.1m, 9% lower than the $157.9m predicted by Wall Street analysts. Marathon’s net loss, which includes a $148m loss on the fair value of digital assets, increased to $199.7m from $9m.
According to the digital miner’s press statement, a year-on-year Q2 comparison shows that its Bitcoin (BTC) production plunged by 30%. Marathon attributed this decline in production to multiple factors. Fred Thiel, the firm’s chairman and chief executive officer, commented:
During the second quarter of 2024, our BTC production was impacted by unexpected equipment failures and transmission line maintenance at the Ellendale site operated by Applied Digital, increased global hash rate, and the April halving event.
He added that these issues were rectified and that the company’s “hash rate recovery effort is complete”. Binance noted that despite these obstacles, Marathon managed a “record mining power of 31.5 exahash per second” for the quarter ending 30 June 2024.
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The company recorded revenue of $145m, which is a 78% increase from its Q2 revenue for 2023. Tiel emphasised these highlights and stated:
We produced 2,058 BTC, an average of 23 BTC a day. We ended the quarter with 18,488 BTC on the balance sheet and subsequently purchased an additional $100 million worth of BTC. Our holdings now exceed 20,000 BTC.
