TechFlow news — Bitcoin mining company Marathon Digital (MARA) released its Q2 2024 financial results. Affected by operational challenges and the Bitcoin halving, the company's revenue missed Wall Street expectations, causing its stock to drop as much as 8% in after-hours trading before paring some losses.
The earnings report showed that Marathon generated $145.1 million in revenue during the second quarter, below the $157.9 million forecast according to FactSet data. CEO Fred Thiel said the company’s Bitcoin production in Q2 was impacted by equipment malfunctions, rising global hash rate, and the April halving event. Despite these issues, Marathon stated they have since been resolved, and the company achieved a record-high mining hash rate of 31.5 EH/s in the second quarter.
Marathon’s adjusted EBITDA swung from a $35.8 million profit in the same period last year to an $85.1 million loss this quarter, primarily due to unfavorable fair value adjustments on digital assets and reduced mining output. The company still plans to increase its hash rate to 50 EH/s by the end of the year, with further growth expected next year.
Notably, Marathon sold 51% of its mined Bitcoin during the second quarter to cover operating expenses. However, the company recently announced it purchased $100 million worth of Bitcoin on the open market and has resumed a full hold strategy for newly mined Bitcoin. Marathon currently holds over 20,000 Bitcoin.
