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Marathon Digital beat out sales estimates for Q1 2022, but reported an overall loss due to a $19.6 million impairment charge.
Leading Bitcoin (BTC) mining company Marathon Digital Holdings Inc (NASDAQ: MARA) published its Q1 2022 financial report showing first-quarter sales of $51.7 million. This figure edged out the general consensus estimate of $51.5 million, and represents a 465% rise from the year-ago quarter. In addition, Marathon’s first-quarter adjusted earnings before interest, taxes, depreciation, and amortization (EBITDA) came in at $39.4 million. Once again, the BTC-mining specialist comfortably cleared analysts’ estimates of $38 million for the period. In addition, the latest EBITDA figures were substantially up from the $6.12 million recorded during the same period in 2021.
However, Marathon Digital shares dipped nearly 2% in after-hours trading following the Q1 2022 earnings report due to an overall loss. This is because the Bitcoin miner also reported a first-quarter impairment charge of $19.6 million on its self-mined Bitcoin. In addition, Marathon stated that there was a decrease of $5.5 million in the fair market value of its investment fund.
Marathon’s net loss for the first quarter came in at $13 million, or 13 cents a share, compared with a net income of $83.4 million, or 87 cents YoY. Furthermore, the digital assets technology company also reported an overall operating loss of $9.13M for Q1. In this case, this figure marked an improvement from the weighty $47.1 million the company posted in the year-ago quarter.
Marathon Digital Bitcoin Performance for Q1 2022
For Q1, Marathon produced 1,259 self-mined Bitcoin, representing a 556% increase YoY, and up 15% from the preceding quarter. In addition, it held around 9,374 Bitcoin, equivalent to a fair market value of $427.7 million as of March 31st. The Bitcoin miner has raised capacity so far by securing large quantities of mining machines from manufacturers.
Marathon’s chairman and CEO Fred Thiel commented on the company’s mining situation, especially regarding hashrate targets. As he put it:
“Given the progress we have made to date in deploying behind the meter, we believe we will be through our backlog of miners and fully back on track with deployments before the end of this year, keeping us on pace to reach 23.3 EH/s by early 2023.”
In addition, Thiel also gave the full scale of Marathon’s projected miners for the rest of the year, as well as environmental conscientiousness. The company chief executive said:
“We believe 2022 will be transformational for Marathon as we are in the process of deploying nearly 200,000 miners and transitioning our operations to be 100% carbon neutral.”
As of the quarter ended March 31st, Marathon’s cash on hand was $118.5 million, with total liquidity at $218.5 million. Total liquidity is cash on hand in addition to available revolving credit facilities.
Marathon shares, MARA, were down about 0.5% to $17.68 in post-market trading on Wednesday. So far this year, the mining company’s stock has declined over 45% but rose 5.8% during Wednesday’s day session.