Can it do better? The second quarter (Q2) ended on June 30, and the financial results of major companies are trickling out in the middle of summer. The crypto sector is no exception to the rule, and the giants of the mining are also subjecting themselves to this exercise in style, which consists of presenting their results and then answering questions from investors and the trade press. Today, we’re going to analyze the figures for Q2 from Marathon Digital Holdings which slightly disappointed experts while maintaining a positive dynamic. Good, but can do better, some professors would say. Let’s head to Fort Lauderdale, the Venice of America, to take a look at the report card of this bitcoin-mining giant.
Financial experts’ estimates not met for Marathon Digital…
Marathon Digital Holdings is one of the world’s leading companies in the mining and has facilities mainly in the USA, but also in the United Arab Emirates. When it comes to delivering its resultsthe company’s CEO seemed satisfied with the progress of operations, while acknowledging that the forecasts are not being met. Indeed, financial experts such as FactSet or Zacks Investment Research had respectively forecast an adjusted loss per share of 0,06 $ and 0,03 $ whereas it is finally 0,13 $. Similarly, revenue forecasts were 83,4 and 83,2 million, so when the final figure of 81,8 millions fell, it sounded like a bad result.
However, all this needs to be tempered, because in reality, Marathon Digital is continuing to expand, and the good news is piling up. And to see this, all you have to do is compare the overall figures with the same period last year. The net loss of 21,3 million posted this quarter was 212,6 in 2022. Similarly, the 81,8 million in revenue in 2023 is almost three times that of 2022 and its 24,9 million. Finally, earnings before interest, taxes, depreciation and amortization – the EBITDA – is 25,6 million, compared with -167,6 million. So it’s hard to talk about bad results, but the experts have spoken!
>> 10% discount on your trading fees? Register with Binance (commercial link) >>
…despite a rise in revenues and bitcoin production in the second quarter
Going into a little more detail, we learn that the company sold for 23,4 million dollars of bitcoins extracted to finance operating expensesrepresenting 63% of production. It also amounts to 2,926 BTCfor an average of 32,2 per day, compared with 7,2 last year. During the conference call that accompanies each earnings, Fred Thiel confirmed what he sees as good results:
« After a good start to the year, we accelerated our progress in the second quarter, increasing our hash rate by 54% to 23 exahash and improving our productivity. In addition to our operational progress, we also improved our financial position during the quarter. As a result, we ended with $113.7 million in cash (…) and approximately 12,538 bitcoins with a market value of around $380 million on June 30. »
He went on to outline the new projects that had just begun in Abu Dhabi, and expressed his delight at to « further strengthen its leadership position in the mining space over the coming quarters ».. Marathon Digital is further consolidating its dominance in the sector, and Fred Thiel’s anxieties of May already seem a mere bad memory.
For you, blockchain technology and cryptocurrencies will soon be at the heart of everyday life for all of us. You can gain exposure to Bitcoin, Ethereum and other tokens on the leading exchange. Register now on the Binance platformand save 10% on your trading fees by following this link (commercial link).