Bitcoin miner Marathon Digital (MARA) beat Wall Street's fourth-quarter revenue expectations, largely due to a higher Bitcoin (BTC) price in the period.
The miner reported fourth-quarter revenue of $156.8 million, beating the average analyst estimate of $148.8 million, according to FactSet data. The company said its net loss for the quarter would have been $0.02 per share, excluding the impact of the new accounting rules. Analysts estimated earnings per share of $0.04.
Marathon said it sold 56% of the bitcoins produced in the quarter to fund operating costs.
The company also reiterated its outlook to increase mining performance to around 35 to 37 exahash per second (EH/s) in 2024 and to 50 EH/s by the end of 2025. “With orders already placed for 22 Exahash of miners and options to expand.” “As we add an additional 23 Exahash to these orders, we believe there may be opportunities to accelerate our growth objectives,” the company said in the statement.
Separately, Marathon announced on Wednesday that it would launch a new Bitcoin Layer 2 network called Anduro. The new network will enable the creation of multiple sidechains to promote innovation within the Bitcoin ecosystem, the company said in the statement. The miner is already developing the first two sidechains, one that will serve the Ordinals community – essentially NFTs on Bitcoin – while the other will be an Ethereum-compatible chain for asset tokenization.
The move comes after Marathon recently launched a new venture also aimed at supporting the Bitcoin ecosystem. It launched “Slipstream,” which aims to make confirming large or “non-standard” Bitcoin transactions easier and avoid the delays and complications that users often face.
The miner's shares fell more than 7% in after-hours trading after outperforming peers during the normal trading session on Wednesday. Bitcoin's price shot up today, erasing some of its earlier gains, and is still up 6% at around $60,530. In comparison, the broader CoinDesk 20 index gained 3.6%.
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