Marathon Digital Holdings, a Bitcoin mining company, experienced a staggering 670% increase in revenue year-on-year during the third quarter of 2023. This increase in revenue was accompanied by a nearly five-fold rise in Bitcoin production, which contributed to the company’s shift to a quarterly profit. According to Marathon’s results filing on November 8, the company recorded a net income of $64.1 million in the third quarter.
The remarkable financial performance can be attributed to a 467% surge in Bitcoin production, with the company’s output increasing from 6.7 mined BTC per day in Q3 2022 to 37.9 BTC per day in Q3 2023. Additionally, Marathon’s energized hashrate experienced a 403% boost over the same period, further contributing to the company’s improved financial results.
One of the key factors behind Marathon’s increase in hashrate is its new 27-megawatt hydro-powered mining venture in Paraguay, which was announced on November 8. Furthermore, Marathon’s CEO and chairman, Fred Thiel, expressed his satisfaction with the company’s “significant progress,” emphasizing its positive impact on the company’s balance sheet in anticipation of the upcoming Bitcoin halving event scheduled for April 2024.
Marathon also successfully completed a $417 million note exchange in September, resulting in a 56% reduction in the company’s long-term debt and generating over $100 million in cash savings for shareholders. As a result, Thiel noted, “For the first time in two years, our combined cash and bitcoin holdings exceeded our debt at the quarter’s end.”
Looking ahead, Marathon is committed to further increasing its hashrate. The company currently has an installed hashrate of 23.1 exahashes per second and aims to raise it to 26 EH/s in the short to mid-term, with an additional 30% increase expected in 2024.
Following the release of Marathon’s earnings statement, the company’s share price initially fell by 6.9% to $8.55 on November 8 but rebounded by 4.3% in after-hours trading. Despite the initial decline, the positive financial results and future growth plans have instilled confidence in investors, as evidenced by the recovery in the company’s share price.
In summary, Marathon Digital Holdings’ impressive performance in the third quarter of 2023, driven by a significant increase in revenue and Bitcoin production, as well as the successful reduction of long-term debt, positions the company for future growth and a strong competitive position in the Bitcoin mining industry.
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