Marathon Digital’s BTC production slumps 51% in Q3; Revenue takes further hit from falling BTC price
The company pointed at the decreased production, falling Bitcoin prices, and increasing cost of revenues as the main factors that contributed to its net loss.
Bitcoin (BTC) mining company Marathon Digital Holdings’ (NASDAQ:MARA) earnings report for Q3 2022 shows that the company’s production fell 51% to 616 Bitcoins from 1,252 Bitcoins in Q3 2021.
The company also recorded $12.7 million in revenue, as opposed to the $51.7 million in the prior-year quarter.
Marathon said the decline mainly resulted from lower revenues due to decreasing Bitcoin prices. The company also shut down its Hardin facility in Montana and faced delays in starting up the King Mountain facility in McCamey, Texas, which decreased production further.
The mining company recorded a net loss of $75.4 million, or $0.65 per share, during Q3 2022. In Q3 2021, these numbers were $22.2 million and $0.22, respectively.
Moreover, Marathon also noted that it faced an impairment charge related to the Compute North bankruptcy, and previous legal settlements.
Marathon’s CEO Fred Thiel said that Q3 2022 was a period of transition for the company. He said:
“The third quarter of 2022 was a transition and rebuilding period at Marathon, during which we fully exited the Hardin facility in Montana and began energizing servers at new locations, most notably the 280-megawatt data center that resides behind the meter at the King Mountain wind farm in McCamey, Texas,”
He also added that Marathon will continue increasing its hash rate in the upcoming quarters. According to Thiel, Marathon aims to reach around 9.0 exahashes per second (EH/s)by the year-end, and 23 EH/s in mid-2023.
Marathon said it has around 69,000 active miners that are producing about 7 EH/s. This number increased from 25.272 miners in Q3 2021, which produced around 2.7 EH/s.