Bitcoin mining firm Marathon Digital reported disappointing Q1 2024 revenue figures, missing analyst projections due to equipment malfunctions and adverse weather conditions across multiple mining facilities. Despite a 223% year-over-year revenue increase to $165.2 million, the company fell short of the $193.9 million estimate from Zacks Investment Research.
During the quarter, Marathon mined 2,811 BTC worth around $176.7 million at current prices, reflecting a 28% annual increase but a 34% decline from Q4 2023. CEO Fred Thiel attributed the production shortfall to “unexpected equipment failures, transmission line maintenance, and higher-than-anticipated weather curtailments” at third-party hosted sites.
While net income surged 184% year-over-year to $337.2 million, aided by new accounting rules recognizing unrealized gains on Bitcoin holdings, Marathon’s share price slipped 2.19% on May 9 to $19.65 and fell further in after-hours trading.
Looking ahead, Thiel maintained Marathon’s goal of reaching 50 exahashes per second of computing power by year-end, revising upward from its previous 35-37 EH/s target. The company was also recently added to the S&P SmallCap 600 index, reflecting its profitable operations and market capitalization between $1 billion and $6.7 billion.
