Marathon Digital Reports Wider Losses in Q2 2024
Marathon Digital, formerly known as MARA, reported significant losses in Q2 2024. The company faced challenges due to unexpected equipment failures and April’s Bitcoin halving event, which affected operations.
Financial Highlights
- Net Loss: $199.7 million (compared to a $9 million loss in Q2 2023)
- Total Revenues: $145.1 million, marking a 78% increase year-on-year
- Stock Performance: Shares dropped 7.78% on Nasdaq, down 20.89% year-to-date
Operational Challenges
Fred Thiel, CEO of Marathon, stated that BTC production was hindered by several factors:
– Unexpected equipment failures
– Transmission line maintenance at the Ellendale site
– Increased global hash rate
– The April halving event
Despite setbacks, Marathon achieved an all-time high installed hash rate of 31.5 exahash per second and targets 50 EH/s by year-end. The company produced 2,058 BTC in Q2 2024, down 30% from the previous year and sold 51% of the mined BTC to cover operating costs.
Strategic Moves
Recently, Marathon purchased $100 million worth of bitcoin, increasing its holdings to over 20,000 BTC, representing nearly 0.1% of bitcoin’s total supply. The company plans to adopt a full “HODL” approach for its bitcoin assets.
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