Bitcoin mining firm, Marathon Digital Holdings Inc. has announced a revenue decline for the fourth quarter of 2022. In a press release, the Bitcoin miner said its earnings dropped by 58% from the same period a year earlier to $28.4 million.
According to the release, Marathon recorded a net loss of $686.7 million for the fiscal year that concluded on December 31, 2022. The figure is significantly higher than the net loss of $37.1 million, the company recorded for the same period that ended on December 31, 2021.
Marathon cited unfavorable market conditions that occurred in 2022 for the decline in its revenue. Some of the unfavorable variances highlighted in the report include reduced carrying values of its digital asset, and accelerated expenses associated with its withdrawal from Hardin, the Compute North bankruptcy.
The report also cited a 64% drop in Bitcoin value which lowered its margin and led to impairment charges for its assets.
While the fourth quarter of 2022 was tough on Marathon, the Chairman, and CEO, Fred Thiel stated that the firm attained an operational milestone of moving away from fossil-fuel generation. Additionally, the CEO highlighted that Marathon increased its annual bitcoin output by 30%, from 3,197 BTC in 2021 to 4,144 BTC in 2022.
Marathon Digital Implements Preventive Measures
In the face of these challenges and considering the macroeconomic unpredictability in 2023, Thiel stated that management had to take proactive measures to strengthen the firm’s balance sheet. Based on this background, Marathon completely paid off its term loans under its revolving line of credit in December.
Furthermore, the management took the drastic decision of severing ties with the now-shuttered Silvergate Bank. This led to the release of 3,132 bitcoin that had been used as collateral previously.
Notably, Marathon had received $100 million from the Bank with the intention of using it to buy Bitcoin mining hardware and finance its mining activities.
Thiel also stated that the company will continue to improve its previously purchased mining rigs in order to meet its goal of 23 exahashes by the middle of this year.