Originally published on: November 13, 2024
Bitcoin mining giant MARA Holdings Inc (MARA), formerly known as Marathon Digital, saw a 9.1% drop in after-hours trading following its third-quarter earnings falling short of analyst revenue projections.
On November 12, MARA reported a loss of $0.34 per share, slightly higher than Wall Street estimates. Despite a 34.5% increase in revenue to $131.6 million compared to the previous year, it was below the expected $148.1 million.
The company attributed its $124.8 million net loss in Q3 to a $40 million rise in operational expenses.
Following the release of its earnings, MARA’s stock price dropped to $22.94 after hours, down from $25.23 at closing. This decline came after a 30% surge on November 11 as Bitcoin approached $90,000. Despite this fluctuation, MARA’s shares have risen by 10% since the beginning of the year.
In Q3, MARA mined 147 more Bitcoin blocks and increased its energized hashrate by 17.1% to almost 37 exahashes per second (EH/s), leading to a smaller net loss.
Additionally, the firm raised its Bitcoin holdings by 45% to 26,747 BTC worth $2.36 billion. They have also adjusted their treasury policy to retain all BTC and invested $100 million from their cash reserves to purchase more Bitcoin in Q3.
MARA announced the acquisition of 372 megawatts of capacity at its Ohio facility on November 11, with 152 MW already operational. The company anticipates that it may take 12-18 months before the remaining 220 MW is energized and generating revenue.
As the world’s largest public Bitcoin miner with a market cap of $7.43 billion, MARA remains a key player in the cryptocurrency mining industry.
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