Crypto mining company Marathon Digital missed earnings and revenue expectations with its second quarter 2023 results.
Marathon’s second quarter 2023 results dated Aug. 8 reported revenue of $81.8 million, compared to Zacks Investment Research’s estimate of $83.2 million.
The crypto miner reported a net earnings loss per share of 13 cents, while Zacks estimated a loss of 3 cents per share
Despite a lack of revenue guidance, the mining company grew its revenue by 228% compared to the second quarter of 2022.
The stronger quarter brought Marathon’s 2023 revenue to $132.8 million for the first two quarters, up 73.3% from the first half of 2022.
Marathon’s 2023 sales have rebounded after a difficult 2022. Source: Marathon Digital
The mining company partially attributed its revenue increase to producing an average of 32 bitcoin (BTC) per day — a 314% increase in production compared to the second quarter of last year.
June was Marathon’s toughest month of Q2 as BTC production fell 21% compared to May. The company attributed the drop to poor weather conditions at its Texas plant.
Marathon’s stock price remained broadly sideways after the market close, down 1.65% in after-hours trading to around $15.50 per share, according to Google Finance.
Marathon’s share price remained largely sideways after the market closed. Source: Google Finance
Fred Thiel, Marathon chairman and CEO, said in a press release that the company significantly increased its hash rate and improved efficiency during the quarter.
Related: Bitcoin production growth and capital strategy as a guide for Marathon Digital – CEO
“In the second quarter, we increased our energized hash rate by 54% from 11.5 to 17.7 exahashes,” reported Thiel. He added that Marathon also ramped up its bitcoin production, mining a record 2,926 bitcoins during the quarter, accounting for about 3.3% of the network’s overtime rewards.
Marathon reported a $23.4 million profit by selling 63% of the bitcoins mined in the quarter, which was used to fund operating expenses. Impairment charges on the value of held digital assets were $8.4 million.
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Additional reporting by Brayden Lindrea.
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