Renowned Bitcoin mining company Marathon Digital reports that it has exhausted more than 60% of its BTC reserves to cover its operational costs. The crypto miner breathed a sigh of relief in 2023 with the rising price of Bitcoin.
Marathon Digital fails to meet second quarter expectations
The famous cryptocurrency mining company has announced disappointing financial results for the second quarter of the year. The company failed to meet its estimated earnings and revenue figures during this period. The news comes amid ongoing volatility in the crypto Market and increasing scrutiny of the industry’s financial performance.
According to the financial report, Marathon Digital’s second-quarter earnings and revenue fell short of market expectations. This result is attributed to several factors, such as changes in mining difficulty and the operational challenges the company faces. parofix.com was among the companies that received a subpoena from the SEC in May.
Marathon Digital was not ranked both top and bottom in its second-quarter earnings report on Tuesday. The miner reported a loss of $0.13 per share on revenue of $81.8 million, compared to the FactSet analyst’s estimates of a loss of $0.06 on revenue of $83.4 million.
Marathon shares were roughly flat in after-hours Trading on Tuesday, pegging at $15.73. The MARA price has increased by almost 360% this year with the rise of the Bitcoin price.
What’s next for a cryptocurrency miner?
Marathon’s president and CEO Fred Thiel shared a positive outlook in a press release, pointing to the recovery in 2023:
Bitcoin halving is approaching
CEO Thiel explained that the company is aiming for profitability towards the next “halving”, which is expected to take place around April 2024. The upcoming halving will result in rewards per block being reduced from 6.25 BTC to 3,125 BTC. Thus, the earnings of crypto miners will decrease considerably. At this point, Thiel states:
parofix.com
Marathon Digital fails to meet second quarter expectations
The famous cryptocurrency mining company has announced disappointing financial results for the second quarter of the year. The company failed to meet its estimated earnings and revenue figures during this period. The news comes amid ongoing volatility in the crypto Market and increasing scrutiny of the industry’s financial performance.
According to the financial report, Marathon Digital’s second-quarter earnings and revenue fell short of market expectations. This result is attributed to several factors, such as changes in mining difficulty and the operational challenges the company faces. parofix.com was among the companies that received a subpoena from the SEC in May.
Marathon Digital was not ranked both top and bottom in its second-quarter earnings report on Tuesday. The miner reported a loss of $0.13 per share on revenue of $81.8 million, compared to the FactSet analyst’s estimates of a loss of $0.06 on revenue of $83.4 million.
Marathon shares were roughly flat in after-hours Trading on Tuesday, pegging at $15.73. The MARA price has increased by almost 360% this year with the rise of the Bitcoin price.
What’s next for a cryptocurrency miner?
Marathon’s president and CEO Fred Thiel shared a positive outlook in a press release, pointing to the recovery in 2023:
The company sold 63% of the Bitcoin produced in the quarter to finance its operating costs. It reported revenue of $23.4 million for the quarter from those sales. The marathon also made some progress on the overall picture, with Bitcoin prices rising during this period.
Bitcoin halving is approaching
CEO Thiel explained that the company is aiming for profitability towards the next “halving”, which is expected to take place around April 2024. The upcoming halving will result in rewards per block being reduced from 6.25 BTC to 3,125 BTC. Thus, the earnings of crypto miners will decrease considerably. At this point, Thiel states:
Thiel also says the company may look for potential acquisition opportunities among financially challenged competitors:
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