KEYTAKEAWAYS
- Marathon Digital's Q2 revenue misses estimates for the second consecutive quarter.
- Company reports 78% year-on-year revenue growth but faces post-halving operational challenges.
CONTENT
Bitcoin miner reports $145.1 million in Q2 revenue, falling short of $157.9 million analyst expectations. Despite 78% year-on-year growth, company faces challenges post-Bitcoin halving, selling 51% of mined BTC to cover expenses.
Marathon Digital, a prominent U.S.-listed Bitcoin mining company, saw its shares plummet 8% following the release of its second-quarter earnings report, which fell short of Wall Street expectations. The company reported revenue of $145.1 million, approximately 9% below the anticipated $157.9 million.
>> Also read:
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- Coinbase Surpasses Q2 Expectations with $1.4B Revenue
Despite the shortfall, Marathon’s year-on-year revenue increased by 78% from $81.7 million in Q2 2023. However, this growth was not enough to meet analyst projections. Following the earnings announcement on August 1, MARA’s stock price declined by 7.78%, closing at $18.14.
The cryptocurrency mining sector faced significant challenges in the second quarter, primarily due to rising operational costs following the Bitcoin halving in April. Marathon Digital revealed that it sold 51% of its mined Bitcoin to cover operating expenses, highlighting the financial pressures faced by miners in the current market environment.
The company’s report emphasized that the average price of Bitcoin mined in Q2 2024 was 136% higher than in the previous year. However, Marathon’s daily Bitcoin production decreased, with an average of 22.9 Bitcoin mined per day, 9.3 less than the previous period.
This marks the second consecutive quarter that Marathon has missed consensus estimates, following a similar shortfall in Q1. The company’s Q1 revenues had increased by 223% year-on-year to $165.2 million but still fell 14.80% short of Zacks’ estimate of $193.9 million.
In contrast, rival crypto miner Riot Platforms reported Q2 2024 revenue of $70 million, representing an 8.8% year-on-year decline. Riot’s figures were closer to consensus estimates, falling only 0.63% below Zacks’ prediction. Riot’s stock (RIOT) also experienced a downturn, closing 8.54% lower at $9.32.
Adding to Marathon’s challenges, the company was recently fined $138 million for breaching a non-disclosure or non-circumvention agreement, as reported on July 23.
>> Also read: MARA Boosts Bitcoin Holdings to Over 20,000 BTC
