Marathon Digital Holdings, a Bitcoin mining firm, experienced a 670% increase in revenue in the third quarter of 2023, along with a nearly five-fold rise in Bitcoin production.
As a result, Marathon swung to a quarterly profit, with $64.1 million of net income in the third quarter, based on the firm’s Nov. 8 results filing.
The improved financial results were partly attributed to a 467% spike in Bitcoin (BTC) production, from 6.7 mined BTC per day in Q3 2022 to 37.9 BTC per day in Q3 2023. Marathon’s energized hashrate also boosted 403% over the same timeframe.
Marathon’s Q3 Earnings Release is here:
– Revenue of $97.8M, due to 467% increase in #Bitcoin production and higher BTC prices.
– Adjusted EBITDA improves to $43.7M.
– 8% increase in hash rate; expanding with hydro-powered ventures in Paraguay.
– Long-term debt reduced by 56%,…— Marathon Digital Holdings (NASDAQ: MARA) (@MarathonDH) November 8, 2023
A significant part of Marathon’s boost in hashrate came from its new 27-megawatt hydro-powered mining venture in Paraguay, which it announced on Nov. 8.
Marathon’s CEO and chairman Fred Thiel highlighted the firm’s “significant progress” in strengthening its balance sheet ahead of the Bitcoin halving event scheduled for April 2024.
A $417 million note exchange completed in September reduced Marathon’s long-term debt by 56% and generated over $100 million in cash savings for shareholders. Thiel added, “For the first time in two years, our combined cash and bitcoin holdings exceeded our debt at the quarter’s end.”
Meanwhile, Marathon remains committed to increasing its hashrate in the short to mid-term, with plans to boost its installed hashrate to 26 EH/s and a further 30% in 2024.
Related: Marathon, Riot among most overvalued Bitcoin mining stocks: Report
Marathon’s (MARA) share price fell 6.9% to $8.55 on Nov. 8 but rebounded 4.3% in after-hours trading following the release of Marathon’s earnings statement, according to Google Finance.
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