- Revenues Increase 223% to a Record
$165.2 Million - Net Income Increases 184% to a Record
$337.2 Million , or$1.26 per Diluted Share - Adjusted EBITDA Increases 266% to a Record
$528.8 Million
First Quarter 2024 Financial and Operational Highlights
- Energized hash rate increased 142% to 27.8 EH/s in Q1 2024 from 11.5 EH/s in Q1 2023
- Produced 2,811 BTC during Q1 2024, a 28% increase from Q1 2023
- Revenues increased 223% to
$165.2 million in Q1 2024 from$51.1 million in Q1 2023 - Net income increased 184% to
$337.2 million , or$1.26 per diluted share, in Q1 2024 from$118.7 million , or$0.72 per diluted share, in Q1 2023 - Adjusted EBITDA increased 266% to
$528.8 million in Q1 2024 from$144.5 million in Q1 2023 - Combined unrestricted cash and cash equivalents and bitcoin increased to
$1.6 billion as ofMarch 31, 2024 - Introduced Anduro, a new multi-chain Bitcoin layer-two network aimed at accelerating Bitcoin development and adoption
- Launched the Company’s first products and services to support the Bitcoin ecosystem, including:
- Slipstream – a direct Bitcoin transaction submission service designed to streamline confirmations of large or non-standard Bitcoin transactions;
- MARAFW – custom firmware designed to optimize the individual chip settings of Bitcoin miners;
- MARA UBC 2100 – a replacement control board, designed in-house by Marathon; and
- MARA 2PIC700 – a next generation two-phase immersion cooling system built to transform data center operations with industry leading power, density, and efficiency
- Closed multiple acquisitions of data centers, increasing mining portfolio to more than 1.1 gigawatts of capacity, 54% of which resides on sites now directly owned and operated by the Company
- Increased 2024 hash rate target to 50 EH/s, representing approximately 100% growth in hash rate during 2024
Management Commentary
“During the first quarter of 2024, we doubled the size of our portfolio of digital asset compute, launched our first products and services to support the Bitcoin ecosystem, and we battled against operational challenges to produce record financial results,” said
“Despite the operational challenges we faced in the first quarter, we were able to leverage our agility to redistribute equipment to newly acquired sites amidst ongoing repairs. When combined with our HODL strategy, these actions allowed us to capitalize on Bitcoin’s positive momentum and produce record financial results for the quarter. We grew our topline to a record
“With the expansion capacity we have gained from our recent acquisitions, with 45 additional exahash of capacity available to us between current orders and options, and with
First Quarter 2024 Production Highlights
Year-Over-Year Comparison | Prior Quarter Comparison | |||||||||||||||||||||||
Metric(1) | Q1 2024 | Q1 2023 | % Δ | Q1 2024 | Q4 2023 | % Δ | ||||||||||||||||||
BTC Produced | 2,811 | 2,195 | 28 | % | 2,811 | 4,242 | (34 | )% | ||||||||||||||||
Average Bitcoin Produced per Day | 30.9 | 24.4 | 27 | % | 30.9 | 46.1 | (33 | )% | ||||||||||||||||
Share of Available Miner Rewards (1) | 3.1 | % | 2.5 | % | N/A | 3.1 | % | 4.4 | % | N/A | ||||||||||||||
Energized | 27.8 | 11.5 | 142 | % | 27.8 | 24.7 | 13 | % | ||||||||||||||||
Average Operational | 18.2 | N/A | N/A | 18.2 | 19.4 | (6 | )% | |||||||||||||||||
Installed | 27.8 | 15.4 | 81 | % | 27.8 | 25.2 | 10 | % |
N/A - Not available
1. Defined as the total amount of block rewards including transaction fees that Marathon earned during the period divided by the total amount of block rewards and transaction fees awarded by the Bitcoin network during the period.
2. Defined as the amount of hash rate that could theoretically be generated if all miners that have been energized are currently in operation including miners that may be temporarily offline. Hash rates are estimates based on the manufacturers’ specifications. All figures are rounded.
3. Defined as the average hash rate that was actually generated during the month from all operational miners. All figures are estimates and are rounded.
4. Defined as the sum of energized hash rate (see above) and hash rate that has been installed but not yet energized. Hash rates are estimates based on the manufacturers’ specifications. All figures are rounded.
First Quarter 2024 Financial Results
Net income increased 184% to
Revenues increased 223% to
The Company sold 26% of the bitcoin it produced during the quarter to fund operating costs.
Gains on digital assets were
Adjusted EBITDA increased 266% to
First Quarter 2024 Earnings Webcast and Conference Call
To register to participate in the conference call or to listen to the live audio webcast, please use this link. The webcast will also be broadcast live and available for replay via the investor relations section of our website.
Earnings Webcast and Conference Call Details
Date: Today,
Time:
Registration link: LINK
If you have any difficulty connecting with the conference call, please contact Marathon’s investor relations team at ir@mara.com.
Investor Notice
Investing in our securities involves a high degree of risk. Before making an investment decision, you should carefully consider the risks, uncertainties and forward-looking statements described under the heading "Risk Factors" in our most recent Annual Report on Form 10-K for the fiscal year ended
Forward-Looking Statements
This press release contains forward-looking statements within the meaning of the federal securities laws. Forward-looking statements in this press release relate to the expected timing and achievement of our growth targets, specifically including our anticipated hash rate and exahash growth. You can identify forward-looking statements by the use of words such as “may,” “will,” “could,” “anticipate,” “expect,” “intend,” “believe,” “continue,” or the negative of such terms, or other comparable terminology. Forward-looking statements include the assumptions underlying or relating to such statements. We have based these forward-looking statements largely on our current expectations and projections about future events and trends that we believe may affect our business, financial condition, results of operations and liquidity. The outcomes of the events described in these forward-looking statements are subject to risks, uncertainties and other factors described under the heading “Risk Factors” in our Annual Report, as well as other reports, we have filed with the
About
For more information, visit www.mara.com, or follow us on:
Twitter: @MarathonDH
LinkedIn: www.linkedin.com/company/marathon-digital-holdings
Facebook: www.facebook.com/MarathonDigitalHoldings
Instagram: @marathondigitalholdings
Telephone: 800-804-1690
Email: ir@mara.com
Marathon Digital Holdings Media Contact:
Email: marathon@wachsman.com
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
Three Months Ended | ||||||||
(in thousands, except share and per share data) | 2024 | 2023 | ||||||
Total revenues | 165,198 | 51,132 | ||||||
Costs and expenses | ||||||||
Cost of revenues | ||||||||
Mining and hosting services | (90,211 | ) | (33,377 | ) | ||||
Depreciation and amortization | (77,995 | ) | (17,733 | ) | ||||
Total cost of revenues | (168,206 | ) | (51,110 | ) | ||||
Operating expenses | ||||||||
General and administrative expenses | (73,311 | ) | (15,135 | ) | ||||
Gains on digital assets | 488,807 | 137,398 | ||||||
Change in fair value of derivative | (15,252 | ) | — | |||||
Early termination expenses | (22,097 | ) | — | |||||
Amortization of intangible assets | (2,969 | ) | — | |||||
Research and development | (2,466 | ) | (209 | ) | ||||
Total operating expenses | 372,712 | 122,054 | ||||||
Operating income | 369,704 | 122,076 | ||||||
Gain on investments | 5,236 | — | ||||||
Net loss from extinguishment of debt | — | (333 | ) | |||||
Loss on hedge instruments | (2,292 | ) | — | |||||
Equity in net income of unconsolidated affiliate | 1,259 | — | ||||||
Interest expense | (1,256 | ) | (3,760 | ) | ||||
Other non-operating income | 2,573 | 791 | ||||||
Income before income taxes | 375,224 | 118,774 | ||||||
Income tax expense | (38,051 | ) | (75 | ) | ||||
Net income | $ | 337,173 | $ | 118,699 | ||||
Net income per share common stock - basic | $ | 1.30 | $ | 0.75 | ||||
Weighted average shares of common stock - basic | 259,098,664 | 159,186,506 | ||||||
Net income per share of common stock - diluted | $ | 1.26 | $ | 0.72 | ||||
Weighted average shares of common stock - diluted | 267,912,443 | 168,999,461 | ||||||
Supplemental information: | ||||||||
bitcoin (“BTC”) production during the period, in whole BTC | 2,811 | 2,195 | ||||||
Average bitcoin per day, in whole BTC | 30.9 | 24.4 | ||||||
Total margin (total revenues less total cost of revenues) | $ | (3,008 | ) | $ | 22 | |||
Total margin excluding the impact of depreciation and amortization | $ | 74,987 | $ | 17,755 | ||||
General and administrative expenses excluding stock-based compensation | $ | (21,398 | ) | $ | (11,399 | ) | ||
Installed | 27.8 | 15.4 | ||||||
Energized | 27.8 | 11.5 | ||||||
Average operational | 18.2 | 6.9 | ||||||
Cost per Petahash Rate per day (1) | 45.2 | 53.7 | ||||||
Share of available miner rewards | 3.1 | % | 2.5 | % | ||||
Number of blocks won | 368 | 221 | ||||||
Transaction fees as a percentage of total | 7.0 | % | 2.4 | % | ||||
Reconciliation to Adjusted EBITDA: | ||||||||
Net income | $ | 337,173 | $ | 118,699 | ||||
Exclude: Interest expense | 1,256 | 3,760 | ||||||
Exclude: Income tax expense | 38,051 | 75 | ||||||
EBIT | 376,480 | 122,534 | ||||||
Exclude: Depreciation and amortization | 83,548 | 17,733 | ||||||
EBITDA | 460,028 | 140,267 | ||||||
Exclude: Stock compensation expense | 51,913 | 3,945 | ||||||
Exclude: Early termination expenses | 22,097 | — | ||||||
Exclude: Gain on investments | (5,236 | ) | — | |||||
Exclude: Net loss from extinguishment of debt | — | 333 | ||||||
Adjusted EBITDA (2) | $ | 528,802 | $ | 144,545 |
(1) The Company defines Energized
The Company believes that these metrics are useful as an indicator of potential bitcoin production. However, these metrics cannot be tied directly to any production level expected to be actually achieved as (a) there may be delays in the energization of Installed
(2) Non-GAAP Financial Measures In addition to our results determined in accordance with GAAP, the Company also provides adjusted EBITDA and total margin excluding depreciation and amortization, which are non-GAAP measures. The Company provides investors with reconciliations from net loss to adjusted EBITDA and total margin to total margin excluding depreciation and amortization as components of Management’s Discussion and Analysis. The Company defines adjusted EBITDA as (a) GAAP net income (loss) plus (b) adjustments to add back the impacts of (1) depreciation and amortization, (2) interest expense, (3) income tax expense (benefit) and (4) adjustments for non-cash and non-recurring items which currently include (i) stock compensation expense, (ii) early termination expenses, (iii) gain on investments, and (iv) losses from extinguishment of debt. The Company defines total margin excluding depreciation and amortization as (a) GAAP total margin less (b) depreciation and amortization.
Adjusted EBITDA and total margin excluding depreciation and amortization are not financial measures of performance under GAAP and, as a result, these measures may not be comparable to similarly titled measures of other companies. Non-GAAP financial measures are subject to material limitations as they are not in accordance with, or a substitute for, measurements prepared in accordance with GAAP. These non-GAAP measures are not meant to be considered in isolation and should be read only in conjunction with our Interim Reports on Form 10-Q and our Annual Reports on Form 10-K as filed with the
Source:
2024 GlobeNewswire, Inc., source