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Marathon Digital Revenue Report Underwhelms But Record BTC Mined in Q2

3 mins
Updated by Kyle Baird
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In Brief

  • Despite falling short of analysts' expectations, Marathon Digital reported Q2 revenues of $81.8M, a significant increase from $24.9M in the same quarter of 2022.
  • Marathon Digital's CEO, Fred Thiel, revealed that the company increased its hash rate by 54% to 17.7 exahashes, resulting in a record production of 2,926 Bitcoin.
  • The company ended Q2 with $113.7M in unrestricted cash and cash equivalents and approximately 12,538 Bitcoin, valued at around $380M at the end of the quarter.
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Bitcoin mining giant Marathon Digital has just released its revenue report, but it has fallen short of analysts’ expectations. Despite the underwhelming earnings, the firm has been busy mining a record amount of Bitcoin for the quarter. 

On Aug. 8, Marathon Digital released its second quarterly earnings report detailing revenues of $81.8 million for the three-month period. 

Record Bitcoin Mining For Marathon

However, the revenue figure fell slightly short of the $83.5 million analyst estimations. Furthermore, the Bitcoin mining company recorded a net loss of $21.3 million, or $0.13 per share, during the three months.

Marathon noted that the revenue was significantly higher than the same quarter in 2022, which had $24.9 million. It added that a 314% increase in Bitcoin production “more than offset 14% lower average Bitcoin prices during the current year period.”

Marathon’s chairman and CEO, Fred Thiel, said the company increased its hash rate by 54% to 17.7 exahashes. Growing the hash rate faster than the rest of the network enabled the firm to increase its BTC production, Thiel added. 

“We produced a record 2,926 bitcoin during the second quarter, representing approximately 3.3% of the Bitcoin network rewards available during the period.”

Marathon Q2 BTC Production. Source: Marathon Digital
Marathon Q2 BTC Production. Source: Marathon Digital

Thiel added that Marathon exited the quarter with $113.7 million in unrestricted cash and cash equivalents and approximately 12,538 Bitcoin. That BTC was worth approximately $380 million at the end of Q2. 

He noted that the decrease in Marathon’s cash position was offset by the increase in its Bitcoin holdings. 

Company stock (MARA) traded flat on the day, changing hands for $15.36 during after-hours trading. However, like most Bitcoin mining firms, Marathon has had an epic year so far, with share prices increasing 350% since Jan.1. 

This is despite the firm being hit with a class action lawsuit in May alleging that it violated federal securities laws. 

Cipher Earnings Out, Stock Surges  

Cipher Mining also missed analyst estimates with its earnings report released this week. The firm posted revenues of $31.22 million for the quarter, missing the Zacks Consensus Estimate by 3%.  

However, Cipher stock (CIFR) gained 11% on the day to reach $3.72 in after-hours trading. Cipher shares are up a whopping 480% since the beginning of 2023. 

Cipher Mining CIFR Stock Price. Source: TradingView
Cipher Mining CIFR Stock Price. Source: TradingView

Revenue reports from Bitcoin mining firms Riot and Hive are expected later this month.  

Bitcoin mining companies are racing to scale up their hash power with new hardware to become more efficient ahead of the BTC halving in March or April next year.

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Martin Young
Martin Young is a seasoned cryptocurrency journalist and editor with over 7 years of experience covering the latest news and trends in the digital asset space. He is passionate about making complex blockchain, fintech, and macroeconomics concepts understandable for mainstream audiences.   Martin has been featured in top finance, technology, and crypto publications including BeInCrypto, CoinTelegraph, NewsBTC, FX Empire, and Asia Times. His articles provide an in-depth analysis of...