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.”
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.
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.
Disclaimer
In adherence to the Trust Project guidelines, BeInCrypto is committed to unbiased, transparent reporting. This news article aims to provide accurate, timely information. However, readers are advised to verify facts independently and consult with a professional before making any decisions based on this content. Please note that our Terms and Conditions, Privacy Policy, and Disclaimers have been updated.
