Marathon Digital, a leading US-based Bitcoin miner, saw its shares drop by 8% after reporting second-quarter earnings that fell short of Wall Street expectations. Despite a significant year-on-year revenue increase, operational challenges and rising costs affected the company’s performance.
Points
- Marathon Digital’s Q2 revenue was $145.1 million, missing analyst estimates of $157.9 million.
- Year-on-year revenue increased by 78%, but quarterly performance declined.
- The company sold 51% of its mined Bitcoin to cover operational expenses.
- Rising operational costs and decreased Bitcoin production impacted results.
- Rival Riot Platforms performed closer to estimates, highlighting industry challenges.
Marathon Digital, a prominent Bitcoin miner listed on the United States stock exchange, reported disappointing second-quarter earnings, leading to an 8% drop in its share price. The company’s revenue for Q2 was $145.1 million, falling short of the $157.9 million anticipated by analysts, according to Yahoo Finance data.
Despite a significant 78% increase in year-on-year revenue from $81.7 million in Q2 2023, Marathon’s performance declined compared to the previous quarter. The company’s stock price fell by 7.78%, ending the trading day at $18.14, as per Google Finance data.
Marathon attributed the shortfall to rising operational costs following the Bitcoin halving in April and the sale of 51% of its mined Bitcoin to cover these expenses. The report indicated that the average price of Bitcoin mined in Q2 2024 was 136% higher than in the prior year period. On average, Marathon mined 22.9 Bitcoins per day, which is 9.3 fewer Bitcoins daily compared to the previous period.
This is the second consecutive quarter that Marathon has missed consensus estimates, having also fallen short in Q1. In the first quarter, Marathon’s revenues increased by 223% year-on-year to $165.2 million, but still missed the $193.9 million estimate from investment analyst firm Zacks by 14.80%.
Rival crypto miner Riot Platforms posted $70 million in revenue for Q2 2024, a year-on-year decline of 8.8%, but closer to the consensus estimates. Riot’s stock ended the trading day down 8.54%, closing at $9.32.
Marathon’s challenges reflect the broader struggles of Bitcoin miners dealing with rising costs and fluctuating Bitcoin prices. The company’s strategic decisions, such as selling a significant portion of its mined Bitcoin, highlight the difficult balance between operational expenses and maintaining profitability in a volatile market.
解説
- Marathon Digital’s revenue miss underscores the impact of rising operational costs and the Bitcoin halving event.
- The sale of 51% of mined Bitcoin to cover expenses reflects the financial pressures faced by mining companies.
- Comparison with Riot Platforms’ performance highlights industry-wide challenges and varying strategies among competitors.
- Marathon’s continued expansion and strategic adjustments will be crucial in navigating future market volatility.
- Investors should closely monitor operational efficiency and cost management in the Bitcoin mining sector.