Bitcoin Miner MARA Posts Record Quarterly Revenue, Beating Estimates

Bitcoin mining firm MARA Holdings reported document income and earnings in This fall 2024, surpassing analysts’ expectations and the challenges introduced by final yr’s Bitcoin halving occasion.

The corporate posted a 37% improve in income, reaching $214.4 million, in comparison with $156.8 million in Q4 2023, owing to a 132% rise within the common value of Bitcoin mined, as per its fourth-quarter statement.

The Florida-based agency’s internet revenue for the quarter grew by 248%, totaling $528.3 million, in comparison with $151.8 million in the identical interval final yr. 

Whereas Bitcoin’s value improve contributed a hefty $119.9 million to the entire, the corporate nonetheless confronted a $64.2 million drop in income on account of decreased Bitcoin manufacturing, which was closely impacted by the April halving occasion.

The Bitcoin halving successfully slashed the reward miners obtain from fixing the computational puzzle inherent in proof-of-work networks by 50%, from 6.250 BTC to simply 3.125 BTC per block.

In consequence, MARA mined 2,492 BTC in This fall 2024, down 27% from the three,490 BTC produced in the identical quarter in 2023.

Nonetheless, regardless of the decline in manufacturing, MARA was capable of improve its whole blocks gained by 25%, reaching 703 blocks in This fall 2024 in comparison with 562 in This fall 2023.

Earnings per share additionally far exceeded expectations, coming in at $1.24, a big uplift in comparison with analysts’ forecast of a lack of $0.32 per share, as per Market Beat data.

The EPS end result marked a big earnings shock, with MARA’s inventory climbing by 7.41% to $13.38 in after-hours buying and selling, Google Finance data reveals.

MARA’s hashrate grew 115% to 53.2 EH/s in This fall 2024, up from 24.7 EH/s in This fall 2023, pushed by strategic acquisitions and vitality capability enlargement.

Power hashrates measure the computational energy utilized in mining, usually in exahashes per second (EH/s), figuring out the speed of transaction processing and community safety.

MARA’s vitality and internet hosting prices additionally rose sharply by 70%, totaling $127.4 million in This fall 2024, in comparison with $75.1 million in This fall 2023. 

The corporate’s direct vitality value per Bitcoin for its owned mining websites elevated to $28,801, up from $23,000 within the earlier yr, reflecting the challenges of scaling operations whereas sustaining profitability.

MARA reported a 62% BTC yield per share for 2024 and didn’t promote any Bitcoin out of its whole holding of 44,893 BTC, price $4.6 billion, in This fall.

The second-largest corporate holder of Bitcoin is taking proactive steps to distinguish itself from its rivals.

“Our focus isn’t just on Bitcoin mining however on being the lowest-cost producer in an setting the place effectivity and flexibility are paramount,” MARA Chairman and CEO Fred Thiel wrote within the annual shareholder letter.

Whereas MARA comes ahead with a strategic push, different miners are struggling to deal with rising vitality prices and the affect of Bitcoin’s halving occasion. 

These challenges are mirrored in Bitdeer’s latest efficiency, because the Singapore-based miner disclosed a big fourth-quarter lack of $532 million. Regardless of its efforts to develop proprietary mining chips, Bitdeer’s inventory took a success, dropping 20% following the announcement.

Edited by Sebastian Sinclair