Marathon Digital misses Q1 estimates on bad weather, utility outages
Bitcoin (BTC) miner Marathon Digital missed Wall Street analysts' revenue estimates for first-quarter 2024 results, due to bad weather and equipment failures.
Marathon's Q1 revenues rose 223 percent year-over-year to $165.2 million in May 9 shared results — but still missed the $193.9 million estimate from investment analyst Zacks by 14.80 percent.
The company said it mined 2,811 BTC during the quarter, currently worth $176.7 million, up 28 percent from a year ago, but down 34 percent from the 4,242 BTC mined in Q4 2023.
On a May 9 earnings call, Marathon CEO Fred Thiel said the product was impacted by “unexpected equipment failures, primarily transformers handled by our third-party sites, utility company transmission line maintenance and multiple sites damaged by expected weather.” “
In its earnings report, Marathon said bad weather hit its Garden City location in central Texas and “other sites.” On April 2, he found the location of Texas.
He added that it “relieved many of these issues” and was performing “at a high level” at 27 exahashes per second (EH/s).
TL had expected it to rise to 50 EH/s by the end of the year, down from its earlier target of 35 to 37 EH/s at the end of April.
The BTC miner's first-quarter net income rose 184% year-over-year to $337.2 million, with earnings of $1.26 per share beating the Zacks Estimate of $0.02.
However, earnings were boosted by new Financial Accounting Standards Board (FASB) rules that allowed Marathon to post a quarterly paper profit of $488.8 million on the 17,320 BTC it held as of March 31.
Related: Digital currency group's first-quarter revenue jumps 51% despite GBTC exits
Marathon Digital ( MARA ) shares traded down 2.19% at $19.65 on May 9, and were down 1% in afternoon trading, according to Google Finance.
Shares are down 14.30% year-to-date, reaching a high of $31 on February 28, 2024.
Earlier this week, on May 7, S&P Dow Jones Indices Marathon said it would join the S&P SmallCap 600 index, which tracks 600 U.S. companies with a market capitalization of between $1 billion and $6.7 billion in the most recent quarter and the most recent four quarters of earnings.
Magazine: 68% of Runes Are in the Red – Are They Really an Update for Bitcoin?
