Bitcoin Miner Marathon Digital Misses Q1 Revenue

itcoin">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 itcoin">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.

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