Marathon Digital Holdings (MARA) Posts Q4 Results, Falls Just Short of Revenue Estimates

UTC by Tolu Ajiboye · 3 min read
Marathon Digital Holdings (MARA) Posts Q4 Results, Falls Just Short of Revenue Estimates
Photo: Depositphotos

Overall, the Q4 report Marathon Digital published revealed considerable improvement over the same quarter from the year before.

Marathon Digital Holdings Inc (NASDAQ: MARA) recently posted its Q4 results, showing a 17% rise in revenue from the previous quarter. In addition, the crypto mining company’s production rate declined by about 12% to 1,098 self-mined Bitcoins (BTC) for the fourth quarter. Although this is markedly lower than the 1,252 tokens realized in the third quarter, it still represents a whopping 600% increase from the same period a year ago.

Fred Thiel, the chief executive officer of Marathon Digital, weighed in on the development of Marathon’s data center in Montana. According to Thiel, “while maintenance to the power generating station in Hardin, MT materially impacted our bitcoin production in November, we still produced 1,098 Bitcoin in the fourth quarter and ended the year with our most productive month to date, producing 484.5 bitcoin in December alone.”

Q4 revenue for Marathon, one of the largest publicly traded bitcoin miners in North America, stood at $60.3 million. According to FactSet data, this figure fell just short of the general consensus estimate of $60.9 million. However, the firm’s adjusted earnings was $0.36 per share, edging out analysts’ estimate of $0.35. Over the last four quarters, Marathon has now exceeded consensus earnings-per-share estimates twice.

Marathon’s shares rose by 0.4% in post-market trading Tuesday after rising nearly 3% during regular trading hours. Meanwhile, the price of BTC, the company’s primary mined commodity, advanced upward by 2% and is currently trading at just below $44K.

The total revenue generated by Marathon for the fiscal year of 2021 was $150.5 million. The sum represented a massive upswing from the comparatively paltry $4.4 million realized the year before.

Marathon Digital Q4 Report Could Indicate More

Marathon’s chief financial officer Sim Salzman also shared his thoughts on the company’s recent report. As Salzman put it:

“In 2021, we grew our revenues 3,353% year-over-year to $150.5 million. Due to the leverage in our business model, we produced non-GAAP income from operations of $118.7 million and non-GAAP net income of $168.7 million, or $1.70 per diluted share, during the same time period.

Thiel also stated that Marathon was working towards more renewable methods of extracting digital currencies in the near future. As he put it:

“We believe Marathon remains well positioned to generate approximately 23.3 EH/s and for our mining operations to be 100% carbon neutral by early 2023.”

As of February 28th, Marathon held about 8,956 Bitcoins, worth $386.8 million at $43,193 each.

About Marathon

Founded on February 23rd, 2010 and headquartered in Las Vegas, Marathon is a digital asset technology company. Engaging in mining crypto, Marathon focuses on the blockchain ecosystem as well as the production of digital assets. The company, formerly known as Marathon Patent Group, notably purchased a lot of BTC and mining equipment in 2021.

As of press time, MARA is trading at $26.

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Tolu Ajiboye
Author Tolu Ajiboye

Tolu is a cryptocurrency and blockchain enthusiast based in Lagos. He likes to demystify crypto stories to the bare basics so that anyone anywhere can understand without too much background knowledge. When he's not neck-deep in crypto stories, Tolu enjoys music, loves to sing and is an avid movie lover.

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