Marathon Digital reports a stellar 229% increase in revenue in 2023, marking a significant turnaround with record BTC production.
Marathon Digital Holdings Inc. (NASDAQ: MARA), a prominent player in the Bitcoin mining sector, reported a stunning turnaround in its business fortunes for the fiscal year ending December 31, 2023. The Fort Lauderdale-based firm, known for its large-scale Bitcoin mining operations, revealed record revenue of $388 million for 2023, representing a 229% jump from the previous year.
2023 proved to be a breakout year for Marathon, with net income of $261.2 million, or $1.06 per diluted share, reversing the prior year’s net loss of $694 million, or $(6.12) per diluted share. Adjusted EBITDA also reflected this positive trend, improving to $419.9 million as opposed to a loss of $543.4 million in 2022. These improvements were largely due to a significant increase in Bitcoin production, which saw a growth of 210 % to a record 12,852 BTC, along with an increase in the average price of Bitcoin.
Fred Thiel, Marathon’s chairman and CEO, expressed satisfaction with the year’s performance, highlighting the company’s success in energizing its fleet and improving operational efficiency. This operational success was reflected in the company’s energized hashrate, which grew by 253% to 24.7 exahashes per second (EH/s), and fleet efficiency improvements to 24.5 joules per terahash.
The company’s financial health was further supported by a 56% reduction in debt to $331 million from $748 million, achieved at a 21% discount to par, which translated into $101 million, or $0.55 per share, in cash savings. Combined unrestricted cash and cash equivalents, along with bitcoin holdings, totaled $997.0 million at the end of December 2023.
The expansion of Marathon’s mining portfolio was another highlight of the year, with the acquisition of two data centers increasing total mining capacity to over 900 megawatts. This expansion strategically positions the company to directly own 45% of the sites in its portfolio. The company’s mining operations now span 11 sites on three continents, demonstrating the scale and global reach of Marathon’s business.
Looking ahead to 2024 and beyond, Marathon has set ambitious goals to increase its hashrate to approximately 35 to 37 exahashes. By the end of 2025, the company plans to double its current capacity to 50 exahashes, already having orders for 22 exahashes of miners and options to add an additional 23 exahashes.
The 2023 fourth quarter reflected year-over-year success, with net income improving to $151.8 million, or $0.66 per diluted share, a significant jump from a net loss of $391.6 million, or $(3.13) per diluted share. reduced value during the period of the previous year. Revenue for the quarter showed a steady increase of 452% to $156.8 million, led by a 172% increase in Bitcoin production and higher average Bitcoin prices.
The company’s earnings webcast and conference call held on February 28, 2024 offered investors additional information about its financial results and operating strategies.
The remarkable turnaround and record performance of Marathon Digital Holdings in 2023 is a testament to the resilience and adaptability of the crypto mining industry, which has faced numerous challenges in recent years. Marathon’s results may serve as an example of the sector’s potential and the growing mainstream adoption of cryptocurrency-related businesses.
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