Marathon Digital Reports Record-Breaking 2023 Revenues

Marathon Digital, a leading Bitcoin mining giant based in the United States, witnessed a substantial surge in revenues for the fiscal year 2023, reaching a record-breaking $387.5 million. The firm’s earnings report, released on February 28, unveiled a remarkable 229% increase in revenue compared to the previous year.

As reported earlier by TheCoinRise, Marathon unveiled a new multichain layer-2 network called Anduro to foster the acceleration of Bitcoin development and adoption.

Marathon Digital CEO Weighs In

CEO Fred Thiel expressed pride in the company’s accomplishments, stating, “2023 was a record-breaking year for Marathon, during which we achieved our primary objectives of energizing our fleet of previously purchased mining rigs and optimizing our performance.”

In the fourth quarter alone, Marathon Digital reported revenues of $156.8 million, an impressive 452% increase from the same period in 2022 and surpassing analyst expectations of $148.8 million. 

Surge in Bitcoin Production

The boost in revenue was attributed to a remarkable 172% increase in Bitcoin production year-over-year, combined with nearly double the average BTC price during the period. The company sold 56% of the Bitcoin it produced in the quarter to cover operational costs.

Notably, Marathon’s Bitcoin production skyrocketed by 210%, reaching a record 12,852 BTC in 2023. The energized hash rate also surged by 253%, reaching 24.7 EH/s (exahashes per second) compared to the previous year’s 7.0 EH/s.

Adjusted EBITDA (earnings before interest, taxes, depreciation, and amortization) for the fourth quarter of 2023 witnessed a substantial improvement, turning positive at $260 million from a loss of $374 million in the same quarter of 2022.

‘Banner Year’

During the company’s earnings call, Thiel expressed optimism about Marathon’s future, stating, “While 2023 was a banner year for Marathon, we have never been more optimistic about Marathon’s future.”

Salman Khan, Marathon’s Chief Financial Officer, added, “We entered 2024 with a strong balance sheet that has us well-positioned for the upcoming halving and beyond.”

Dip in Marathon Digital’s Stock

Despite the impressive financial results, Marathon Digital experienced a 6.7% dip in its stock value on February 29, settling at $28.95 in after-hours trading. However, the company’s shares have witnessed a remarkable surge of more than 300% over the past 12 months.

Competitors like Hut 8 have also expanded their operations, recently establishing a new 63-megawatt mining facility in Culberson County, Texas.

Marathon terminated its deal with Hut 8 in early February and had to pay a termination fee of a whopping $13.5 million to Hut 8 Mining Corp. in exchange for operational control of two recently acquired Bitcoin (BTC) mining facilities.