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DailyBubble News

Bitcoin Miner Marathon Digital Misses Revenue Expectations Due to Production Setbacks

Marathon Digital, a Bitcoin mining company, faced challenges in meeting revenue expectations set by analysts for the first quarter of 2024. The company cited adverse weather conditions and equipment malfunctions as factors contributing to its lower-than-expected performance.

Despite experiencing a 223% year-on-year revenue growth to $165.2 million, Marathon Digital fell short of the projected estimate of $193.9 million by 14.80%, according to Zacks. The company reported mining 2,811 BTC, valued at $176.7 million, during the first quarter, marking a 28% increase from the previous year but a 34% decline from the previous quarter.

Marathon CEO Fred Thiel addressed the setbacks during an earnings call, attributing them to unexpected equipment failures and weather-related disruptions. The company operated at a record high of 27 exahashes per second and aims to reach 50 EH/s by year-end.

Despite the challenges, Marathon adapted and introduced new products to improve efficiency. The company’s first-quarter earnings per share of $1.26 exceeded Wall Street’s projected $0.02, influenced by favorable mark-to-market adjustments due to increased Bitcoin prices.

Following the earnings report, Marathon Digital shares (MARA) dropped by 2.19% to close at $19.65. Year-to-date, the company’s share price has fallen by 14.30% since peaking at $31.03 on February 28, 2024.

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