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Marathon Digital

Marathon Digital (MARA) Q2 2024 Earnings

Reported Aug 1, 2024 at 4:44 PM ET · SEC Source

Q2 24 EPS

$-0.72

MISS 414.29%

Est. $-0.14

Q2 24 Revenue

$145.1M

MISS 8.05%

Est. $157.8M

vs S&P Since Q2 24

-68.1%

TRAILING MARKET

MARA -27.0% vs S&P +41.1%

Market Reaction

Did MARA Beat Earnings? Q2 2024 Results

Marathon Digital delivered a deeply disappointing second quarter, missing on both the top and bottom lines as the twin pressures of the April halving and unexpected equipment failures weighed heavily on results. The company posted revenue of $145.14 … Read more Marathon Digital delivered a deeply disappointing second quarter, missing on both the top and bottom lines as the twin pressures of the April halving and unexpected equipment failures weighed heavily on results. The company posted revenue of $145.14 million, up 77.5% year-over-year but below the $157.84 million consensus estimate, while its loss per share of $0.72 fell far short of the $0.14 loss analysts had expected, a 414.29% miss driven largely by a $148.00 million unrealized loss on digital assets under newly adopted fair value accounting rules. BTC production fell 30% to 2,058 coins as halved block rewards and site-level outages at the Ellendale facility cut into output even as the average mined BTC price climbed 136%. Operationally, the picture was more constructive, with energized hash rate reaching 31.5 EH/s, up 78% year-over-year, and the company remains on track toward a 50 EH/s target by year-end. Marathon also signaled a strategic shift in its treasury approach, purchasing an additional $100 million in Bitcoin after quarter-end and adopting a full HODL policy, pushing total holdings above 20,000 BTC.

Key Takeaways

  • • 136% increase in average BTC price mined drove revenue growth despite lower production
  • • April 2024 Bitcoin halving event reduced block rewards by 50%
  • • Unexpected equipment failures and transmission line maintenance at Ellendale site reduced BTC output
  • • Energized hash rate increased 78% YoY to 31.5 EH/s
  • • Average operational hash rate nearly doubled to 24.0 EH/s from 12.1 EH/s YoY
  • • $148.0 million fair value loss on digital assets under new ASU 2023-08 accounting rules drove net loss
  • • Acquisition of GC Data Center contributed $8.7 million in hosting services revenue
24/7 Wall St

MARA YoY Financials

Q2 2024 vs Q2 2023, source: SEC Filings

24/7 Wall St

MARA Revenue by Segment

With YoY comparisons, source: SEC Filings

Q3 24 Q4 25

“During the second quarter of 2024, our BTC production was impacted by unexpected equipment failures and transmission line maintenance at the Ellendale site operated by Applied Digital, increased global hash rate, and the April halving event. However, I'm pleased to report that transformer issues at the Ellendale site were mitigated and remediated post quarter end, and our hash rate recovery effort is complete. We reached an all-time high installed hash rate of 31.5 exahash in the second quarter and continue to target 50 exahash of energized hash rate by the end of 2024 with additional growth in 2025.”

— Fred Thiel, Q2 2024 Earnings Press Release

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