Marathon Digital swings to a profit, but its stock falls after earnings



Marathon Digital Holdings Inc.’s stock has been on a big run over the past month, but that was set to cool after the company’s latest results.

Shares of Marathon Digital
MARA,
+2.38%
fell 6.7% in Wednesday’s after-hours action, even as the bitcoin-mining company swung to a profit. The stock has risen 74% over the past month and 151% over the past three months as bitcoin prices
BTCUSD,
+3.93%
have surged.

Read: Bitcoin nears all-time high, but this rally is much different than 2021 record run

Marathon posted fiscal fourth-quarter net income of $151.8 million, or 66 cents a share, whereas it logged a net loss of $391.6 million, or $3.13 a share, in the year-earlier period. That prior-year period included more than $300 million in impairments of mining equipment and vendor advances.

Revenue for the latest quarter came in at $156.8 million, up from $28.4 million a year prior. Analysts had been looking for $148.8 million.

“Given our momentum, our strong balance sheet, and the differentiators we are building with our technology stack, we are optimistic that the most exciting times for our organization are still to come,” Chief Executive Fred Thiel said in a release.

The company produced 4,242 bitcoins in the fourth quarter, compared with 1,562 in the same period a year before. It said its fleet efficiency improved 21%.

Marathon reduced its debt by 56% to $331 million at a 21% discount to par.

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Thiel said that during 2024, Marathon plans to grow its hash rate to about 35 to 37 exahash from just under 25 in 2023. Exahash is a unit that measures computational power. By the end of 2025, Marathon expects to be at 50 exahash.

“With orders for 22 exahash of miners already placed and options to add an additional 23 exahash to these orders, we believe there may be opportunities to accelerate our growth targets,” he said.



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