Marathon Digital narrows quarterly loss to $75.4 million

In the third quarter Marathon Digital Holdings posted a net loss of $75.4 million against $191.6 million in April–June.

$MARA‘s Q3 22 financial results are out:

— Consistent improvement in #BTC production

— Increased hash rate 84% from Sept. 30 to Nov. 1

— 69,000 active servers as of Nov. 1

— Increased YTD #BTC production 27% YoY as of Oct. 31https://t.co/2X1Yn6wnGv

— Marathon Digital Holdings (NASDAQ: MARA) (@MarathonDH) November 8, 2022

Year-on-year losses more than tripled to $22.2 million. Among the main factors weighing on revenue compared with the second quarter of 2021, Marathon cited:

• lower bitcoin production and prices (−$39 million);
• relocation costs from the Hardin, Montana data center ($20.8 million);
• decrease in the carrying value of stored bitcoins ($5.9 million);
• impairment loss on investments in the now-bankrupt hosting provider Compute North ($39 million);
• previously disclosed reserve for court-ordered payments ($25 million).

The company partially offset the results with reductions in general and administrative expenses (−$86.9 million) and proceeds from asset sales related to the exit from Hardin ($31.9 million).

During the third quarter Marathon mined 616 BTC — down 51% from a year earlier. By October the firm produced a record 615 BTC, with hash rate up roughly 84%.

As of November 1, the company had a fleet of about 69,000 miners generating 7 EH/s.

«The third quarter was a transitional period and a recovery phase for Marathon, during which we fully vacated the Hardin site and began connecting equipment at new locations — primarily at the 280 MW King Mountain data center in Texas,» said Marathon’s chairman and CEO Fred Thiel.

He noted that this facility is connected ‘behind the meter’ to a wind farm in Makkeymi.

We believe Marathon has a solid foundation on which we can continue to grow the hash rate. Our near-term goal is to reach about 9 EH/s by year-end, and we continue to target 23 EH/s by mid-2023,” Thiel added.

Shares fell 5% in trading on November 8, closing at $9.96. After the quarterly results were released, post-market quotes rose about 2%.

In October, aggregate bitcoin miners’ revenue rose 7% month over month to $589.7 million, according to ForkLog‘s report. In September the figure fell by 19%.

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