Bitcoin Miner Marathon's Shares Tumble After Revenue Unexpectedly Misses Wall Street's Estimates

The miner said its adjusted EBITDA swung to loss, compared to previous year's profit.

Shares of bitcoin miner Marathon Digital (NASDAQ:MARA) fell as much as 8% in Thursday post-market trading after the company's second quarter revenue fell short of Wall Street's estimates.

The shares have since pared some of their losses.

Marathon reported revenue of $145.1 million versus an estimate of $157.9 million, according to FactSet data.

The company's sales were impacted in the second quarter by several operational challenges that hindered its ability to mine bitcoin, as well as the recent halving, Marathon said in its earnings release.

"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,” said Fred Thiel, the firm's CEO, in a statement.

But Marathon said those issues have since been fixed, and the company hit an all-time high mining power of 31.5 exahash per second (EH/s) in the second quarter.

The miner also said that its second quarter adjusted EBITDA swung to a loss of $85.1 million from a gain of $35.8 million in the previous year, largely due to unfavorable fair value adjustments of its digital assets and less BTC being mined in the quarter.

Still, the miner continues to target reaching a hashrate of 50 EH/s by the year-end, and plans to grow it further next year.

Marathon sold 51% of the bitcoin it mined to fund its operating costs in the second quarter. But it recently announced that it bought $100 million of bitcoin in the open market and re-adopted a strategy to fully hold all BTC on its balance sheet. The miner now holds over 20,000 BTC on its balance sheet.

"During the quarter, we organized the internal structure of the business to better align with our growth opportunities, sharpen our strategic focus, bolster accountability, and accelerate our speed and agility as we scale," Thiel said.

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