Marathon posts a $13 million loss in the first quarter of 2022

In the first quarter of 2022, the U.S.-based mining company Marathon Digital Holdings posted revenue of $51.7 million, down 14% from the prior quarter.

$MARA’s Q1 2022 financial results are out:

— Revenue ⬆️ 465% y-o-y to $51.7 M
— #Bitcoin production ⬆️ 556% y-o-y to 1,259 #BTC
— Adj. EBITDA ⬆️ by $33.3 M y-o-y to $39.4 M

Full details, plus registration for today’s earnings call are here 👇https://t.co/yRHoPXOOOe

— Marathon Digital Holdings (@MarathonDH) May 4, 2022

The decline was driven by a drop in the price of the mined cryptocurrency, which could not be offset by growth in physical production. The firm mined 1,259 BTC. This was up 15% from the previous quarter and up 556% year on year.

During the period, the firm posted a net loss of $13 million, driven by a revaluation of its Bitcoin holdings. As of March 31, Marathon had accumulated 9,374 BTC. The cryptocurrency reserves declined in value by $19.6 million.

At quarter-end, cash on hand stood at $118.5 million, and total available liquidity (including undrawn credit lines) was $218.5 million.

Marathon’s equipment fleet grew to 36,830 devices with a total hash rate of about 3.9 EH/s. The company expanded capacity by 14% quarter-on-quarter, while year-on-year growth reached 449%.

The company confirmed a delay in the schedule for to a multi-fold ramp-up of the hash rate, but said it was confident of achieving the year-end target.

“Given the progress we have to date in the meter-by-meter deployment, we are confident we will overcome our lag and catch up by year-end. This will allow us to reach 23.3 EH/s. We believe 2022 will be transformational for Marathon, as we are in the process of deploying nearly 200,000 miners and moving our operations toward 100% carbon neutrality,” said Marathon CEO Fred Thiel.

As Arcane Research notes in its new metric, Marathon were the most overvalued among public mining companies.