Marathon Digital reports a $686.7 million loss for 2022

The mining company Marathon Digital Holdings mined 4,144 BTC in 2022. Compared with the prior period, the figure rose 30% and averaged 11.4 BTC per day.

Marathon Digital Holdings has published its financial and operational results for the fourth quarter and fiscal year 2022. Read the full report here: https://t.co/ZwNCPdnxhL

— Marathon Digital Holdings (NASDAQ: MARA) (@MarathonDH) March 16, 2023

In the fourth quarter, the firm generated a record 1,562 BTC, with the hash rate reaching 7 EH/s.

However for the year Marathon posted a net loss of $686.7 million, compared with $37.1 million in 2021. The company noted that the negative results, despite the growth in operating metrics, were driven by a number of factors such as:

• a reduction in the carrying value of mining equipment and advances to suppliers ($332.9 million);
• revaluation of digital-asset reserves due to price declines ($317.6 million);
• overall revenue decline due to a market downturn — to $150.4 million;
• additional costs to accelerate relocation from the Hardin facility ($54.3 million);
• impairment of assets amounting to $55.7 million related to Compute North bankruptcy;
• previously disclosed legal expenses of $26.1 million;
• higher depreciation costs for the expanded fleet of miners to $27.8 million, and a number of other factors.

The company partly offset the unfavourable conditions by:

• reductions in general and administrative expenses of $117.6 million;
• gains from resale of equipment of $83.9 million;
• income tax benefit of $44.4 million.

“2022 was a tough year for Bitcoin mining, but our team rose to every challenge with integrity, and we became wiser and more resilient,” said Marathon’s Chairman and CEO Fred Thiel.

He noted that the company had taken steps to strengthen its balance sheet amid macroeconomic uncertainty in the year ahead.

“In December we fully repaid our remaining balance on the revolving line of credit. In February 2023 we closed credit facilities with Silvergate Bank, which freed 3,132 BTC from collateral. We are also seeking alternative banking arrangements in light of recent events at Signature Bank,” Thiel said.

He said that for 2023 the company has two main goals: to reach a hash rate of 23 EH/s and to use it as efficiently as possible.

In January, Marathon sold 1,500 BTC to cover part of its costs. In February, the company sold another 650 BTC for the same purpose.