By
Mayowa Adebajo
May 14th, 2024
Marathon Digital announced that the gains on the sale of Bitcoin were $23.4 million in Q2 2023.
One of the leading Bitcoin miners in total hash rate, Marathon Digital Holdings Inc (NASDAQ: MARA) released its Q2 2023 earnings on August 8. According to the announcement, Marathon Digital reported an adjusted loss per share of $0.13 on revenues of $81.8 million whereas analysts surveyed by FactSet had issued an estimate for a loss per share of about $0.06 on revenues of $83.4 million. As a result, MARA shares closed Tuesday trading at $15.72, up 4.31 percent from the day’s opening price. However, MARA shares dropped approximately 2.29 percent during the after-hours market session to trade around $15.36. Nonetheless, the company has performed exemplary well YTD with an uptick of about 359 percent.
The mainstream adoption of Bitcoin among other digital assets has helped BTC value gain more than 77 percent YTD. However, due to a lack of safe Bitcoin investment products like ETFs in the United States, institutional investors are pushed to expose themselves to crypto assets through companies like Marathon Digital.
Marathon Digital Q2 2023 Financial Statement
For Q2 2023 which ended on June 30, the company recorded a net loss of $21.3 million, or $0.13 per share, compared to a net loss of $212.6 million, or $1.94 per share, in the same period last year. The company highlighted that revenues from Bitcoin mining during the second quarter came in at $81.8 million, a significant bump from $24.9 million reported during the same time last year. During the second quarter, the company announced that its Bitcoin production increased by 314 percent, which significantly helped offset the 14 percent lower BTC price compared to the same time last year.
Notably, Marathon Digital sold about 63 percent of the 2,926 Bitcoins produced during the second quarter amounting to $23.4 million. The company highlighted that its adjusted EBITDA was $25.6 million during the second quarter compared with a loss of $167.1 million in the prior year period.
In a bid to ensure future growth prospects, Marathon Digital grew its energized hash rate by approximately 54 percent from 11.5 to 17.7 exahashes. Consequently, the company accounted for a total of 3.3 percent of the total Bitcoins mined during the second quarter.
“In addition to our operational progress, we also improved our financial position during the quarter. We exited the quarter with $113.7 million in unrestricted cash and cash equivalents and approximately 12,538 bitcoin, the market value of which was approximately $380 million on June 30. Although our cash position decreased by $11.2 million from Q1, we increased our unrestricted bitcoin holdings by 1,072 bitcoin, the market value of which was approximately $32.7 million on June 30,” the company noted in the announcement.