Marathon Digital, a prominent Bitcoin (BTC) mining company based in the United States, has seen a remarkable surge in revenue in 2023, leading the company to achieve substantial profitability.
On Wednesday, Marathon Digital unveiled its fourth-quarter and annual earnings report, revealing a record-breaking revenue of $387.5 million in 2023, a staggering 229% increase compared to the previous year.
“2023 was a record-breaking year for Marathon, during which we achieved our primary objectives of energizing our fleet of previously purchased mining rigs and optimizing our performance,” Marathon CEO Fred Thiel said.
Marathon’s Q4 Revenue Soared by 452%
The fourth-quarter revenue soared by 452% to $156.8 million, surpassing analyst expectations and exhibiting significant growth from $28.4 million in the fourth quarter of 2022.
Analysts had estimated a quarterly revenue of $148.8 million.
The surge in revenue was primarily driven by a 172% year-over-year increase in Bitcoin production, combined with a nearly doubled average BTC price during the period, according to the company’s report.
Whomever was selling Marathon Digital tonight after this earnings report will likely regret it.
Some basic math on why this stock is going significantly higher.
They have 15,000 Btc on their balance sheet already and 0 net debt.
They’ll be producing 4-6k Btc per quarter the…
— Endless Capital (@endless_frank) February 28, 2024
To fund operating costs, Marathon Digital sold 56% of the Bitcoin it produced during the quarter.
Adjusted EBITDA (earnings before interest, taxes, depreciation, and amortization) also showcased improvement, with the company reporting $260 million in Q4 2023 compared to a loss of $374 million in the fourth quarter of 2022.
Marathon’s Bitcoin production experienced substantial growth, reaching a record 12,852 BTC in 2023, marking a 210% increase.
Furthermore, the company’s energized hash rate surged by 253%, reaching 24.7 EH/s (exahashes per second) in 2023, compared to the previous year’s 7.0 EH/s.
“We entered 2024 with a strong balance sheet that has us well-positioned for the upcoming halving and beyond,” Salman Khan, Marathon’s Chief Financial Officer, added.
Despite the impressive earnings report, Marathon Digital’s shares experienced a 6.7% decline in after-hours trading on February 29, falling to $28.95.
Nevertheless, the company’s stock has witnessed a remarkable surge of over 300% in the past 12 months.
In an effort to diversify its operations beyond crypto mining, Marathon Digital recently announced its incubation and development of a Bitcoin layer-2 sidechain platform called Anduro on February 28.
Riot Rakes in Record $281M in Revenues
Aside from Marathon, other Bitcoin miners also saw record revenues last year.
For one, Riot Platforms saw its total revenues reach an all-time high of $281 million.
The company said it produced 6,626 Bitcoins during the year, a 19% increase compared to 5,554 during the same twelve-month period in 2022.
The company detailed that Bitcoin Mining revenue accounted for $189.0 million, Data Center Hosting revenue amounted to $27.3 million, Engineering revenue stood at $64.3 million, and other revenue contributed $0.1 million.
Bitcoin Mining revenue exceeded the mining cost of revenue, totaling $92.4 million, representing 48.9% of mining revenue.
This marked an increase of $9.9 million compared to the same period in 2022.
Meanwhile, leading cryptocurrency miners are bracing themselves for the challenges ahead as the mining industry prepares for a major transformation with the 2024 Bitcoin halving event.