- Revenues Increase 229% to a Record
- Net Income Improves to
- Adjusted EBITDA Improves to
- BTC Production Increases 210% to a Record 12,852 in 2023
Fiscal Year 2023 Financial and Operational Highlights
- Energized hash rate increased 253% to 24.7 EH/s in 2023 from 7.0 EH/s in 2022
- Bitcoin production increased 210% to a record 12,852 BTC in 2023 from 4,144 BTC in 2022
- Revenues increased 229% to a record
$387.5 million in 2023 from$117.8 million in 2022 - Net income improved to a record
$261.2 million , or$1.06 per diluted share, from a net loss of$694 million , or$(6.12) per diluted share, in 2022 - Adjusted EBITDA improved to a record
$419.9 million in 2023 from a loss of$543.4 million in 2022 - Combined unrestricted cash and cash equivalents and bitcoin increased to
$997.0 million as ofDecember 31, 2023 - Debt reduced by 56% to
$331 million from$748 million , at a 21% discount to par, resulting in$101 million , or$0.55 per share, in cash savings - Fleet efficiency improved 21% to 24.5 J/TH (joules per terahash) from 30.9 J/TH
- Entered into an agreement to acquire two data centers, increasing mining portfolio to more than 900-megawatts of capacity, 45% of which resides on sites now directly owned by the Company
- Bitcoin mining portfolio diversified across 11 sites on three continents as of
December 31, 2023
Management Commentary
“2023 was a record-breaking year for Marathon, during which we achieved our primary objectives of energizing our fleet of previously purchased mining rigs and optimizing our performance,” said
“We produced a record 12,852 bitcoin in 2023 and drove a 230% increase in revenue to a record
“In 2024, we plan to grow our hash rate to approximately 35 to 37 exahash. By the end of 2025, we plan to be at 50 exahash, which is approximately double our current capacity. With orders for 22 exahash of miners already placed and options to add an additional 23 exahash to these orders, we believe there may be opportunities to accelerate our growth targets.
“Today, Marathon is one of the largest Bitcoin miners in
Fourth Quarter 2023 Production Highlights
Year-over-year Comparison | Quarter-over-quarter comparison | |||||||||||||||||||||||
Metric | Q4 2023 | Q4 2022 | % Δ | Q4 2023 | Q3 2023 | % Δ | ||||||||||||||||||
BTC Produced | 4,242 | 1,562 | 172 | % | 4,242 | 3,490 | 22 | % | ||||||||||||||||
Average Bitcoin Produced per Day | 46.1 | 17.0 | 172 | % | 46.1 | 37.9 | 22 | % | ||||||||||||||||
Share of available miner rewards1 | 4.4 | % | 1.8 | % | 141 | % | 4.4 | % | 4.0 | % | 11 | % | ||||||||||||
Energized | 24.7 | 7.0 | 319 | % | 24.7 | 19.1 | 29 | % | ||||||||||||||||
Average Operational | 19.4 | N/A | 19.4 | 14.2 | 37 | % | ||||||||||||||||||
Installed | 25.2 | 7.0 | 260 | % | 25.2 | 23.1 | 9 | % |
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. |
Fourth Quarter 2023 Financial Results
Net income improved to
Revenues increased 452% to
The Company sold 56% of the bitcoin it produced during the quarter to fund operating costs.
There were no impairments in the fourth quarter of 2023, compared to total impairments of
Gains on digital assets were
Adjusted EBITDA improved to
Fiscal Year 2023 Production Highlights
Year-over-year Comparison | ||||||||||||
Metric | 2023 | 2022 | % Δ | |||||||||
BTC Produced | 12,852 | 4,144 | 210 | % | ||||||||
Average Bitcoin Produced per Day | 35.2 | 11.4 | 209 | % | ||||||||
Share of available miner rewards1 | 3.6 | % | 1.2 | % | 192 | % | ||||||
Energized | 24.7 | 7.0 | 319 | % | ||||||||
Average Operational | 19.4 | N/A | ||||||||||
Installed | 25.2 | 7.0 | 260 | % |
Fiscal Year 2023 Financial Results
Net income improved to
Revenues increased 229% to
The Company sold 74% of the total bitcoin it produced in 2023 to fund operating costs.
There were no impairments in 2023, compared to total impairments of
Gains on digital assets were
Adjusted EBITDA improved to
At
Fourth Quarter and Fiscal Year 2023 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 the Company’s 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 "Risk Factors" in Item 1A of 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 relating to 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. The Company has based these forward-looking statements largely on its current expectations and projections about future events and trends that we believe may affect its business, results of operations and financial condition. 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 the reports the Company files with the
About
Marathon is a digital asset technology company that focuses on supporting and securing the Bitcoin ecosystem. The Company is currently in the process of becoming one of the largest and most sustainably powered Bitcoin mining operations in
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
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS)
Three Months Ended | Year Ended | |||||||||||||||
(in thousands, except share and per share data) | 2023 | 2022 | 2023 | 2022 | ||||||||||||
Total revenues | $ | 156,768 | $ | 28,417 | $ | 387,508 | $ | 117,753 | ||||||||
Costs and expenses | ||||||||||||||||
Cost of revenues | ||||||||||||||||
Cost of revenues - energy, hosting and other | (75,111 | ) | (29,734 | ) | (223,338 | ) | (72,715 | ) | ||||||||
Cost of revenues - depreciation and amortization | (70,957 | ) | (13,827 | ) | (179,513 | ) | (78,709 | ) | ||||||||
Total cost of revenues | (146,068 | ) | (43,561 | ) | (402,851 | ) | (151,424 | ) | ||||||||
Operating expenses | ||||||||||||||||
General and administrative expenses | (39,253 | ) | (18,612 | ) | (95,230 | ) | (56,739 | ) | ||||||||
Gains (losses) on digital assets and digital assets loan receivable | 213,616 | — | 331,484 | (14,460 | ) | |||||||||||
Legal reserves | — | (1,171 | ) | — | (26,131 | ) | ||||||||||
Impairment of deposits due to vendor bankruptcy filing | — | (16,674 | ) | — | (24,661 | ) | ||||||||||
Impairment of digital assets | — | (26,391 | ) | — | (182,891 | ) | ||||||||||
Impairment of patents | — | — | — | (919 | ) | |||||||||||
Impairment of mining equipment and advances to vendors | — | (332,933 | ) | — | (332,933 | ) | ||||||||||
Gain on sale of equipment, net of disposals | — | — | — | 83,879 | ||||||||||||
Losses on digital assets held within investment fund | — | — | — | (85,017 | ) | |||||||||||
Total operating expenses | 174,363 | (395,781 | ) | 236,254 | (639,872 | ) | ||||||||||
Operating income (loss) | 185,063 | (410,925 | ) | 220,911 | (673,543 | ) | ||||||||||
Net gain from extinguishment of debt | — | — | 82,267 | — | ||||||||||||
Loss on hedged instruments | (17,421 | ) | — | (17,421 | ) | — | ||||||||||
Equity in net earnings of unconsolidated affiliate | 30 | — | (617 | ) | — | |||||||||||
Impairment of loan and investment due to vendor bankruptcy filing | — | — | — | (31,013 | ) | |||||||||||
Interest expense | (1,214 | ) | (4,667 | ) | (10,350 | ) | (14,981 | ) | ||||||||
Other non-operating income | 1,443 | 663 | 2,809 | 1,283 | ||||||||||||
Income (loss) before income taxes | 167,901 | (414,929 | ) | 277,599 | (718,254 | ) | ||||||||||
Income tax benefit (expense) | (16,075 | ) | 23,331 | (16,426 | ) | 24,232 | ||||||||||
Net income (loss) | $ | 151,826 | $ | (391,598 | ) | $ | 261,173 | $ | (694,022 | ) | ||||||
Series A Preferred Stock accretion to redemption value | — | — | (2,121 | ) | — | |||||||||||
Net income (loss) attributable to common stockholders | $ | 151,826 | $ | (391,598 | ) | $ | 259,052 | $ | (694,022 | ) | ||||||
Net income (loss) attributable to common stockholders per common stock - basic | $ | 0.67 | $ | (3.13 | ) | $ | 1.41 | $ | (6.12 | ) | ||||||
Weighted average common stock outstanding - basic | 227,444,786 | 125,263,133 | 183,855,570 | 113,467,837 | ||||||||||||
Net income (loss) attributable to common stockholders per common stock - diluted | $ | 0.66 | $ | (3.13 | ) | $ | 1.06 | $ | (6.12 | ) | ||||||
Weighted average common stock outstanding - diluted | 233,358,831 | 125,263,133 | 192,293,276 | 113,467,837 | ||||||||||||
Supplemental information: | ||||||||||||||||
bitcoin (“BTC”) production during the period, in whole BTC | 4,242 | 1,562 | 12,852 | 4,144 | ||||||||||||
Average bitcoin per day, in whole BTC | 46.1 | 17.0 | 35.2 | 11.4 | ||||||||||||
Total margin (revenues less total cost of revenues) | $ | 10,700 | $ | (15,144 | ) | $ | (15,343 | ) | $ | (33,671 | ) | |||||
Total margin excluding the impact of depreciation and amortization | 81,657 | (1,317 | ) | 164,170 | 45,038 | |||||||||||
General and administrative expenses excluding stock-based compensation | (20,516 | ) | (12,892 | ) | (62,586 | ) | (32,144 | ) | ||||||||
Total impairments due to vendor bankruptcy filing | — | (16,674 | ) | — | (55,674 | ) | ||||||||||
Installed | 25.2 | 7.0 | 25.2 | 7.0 | ||||||||||||
Energized | 24.7 | 7.0 | 24.7 | 5.9 | ||||||||||||
Average operational | 19.4 | N/A | 19.4 | N/A | ||||||||||||
Share of available miner rewards | 4.4 | % | 1.8 | % | 3.6 | % | 1.2 | % | ||||||||
Number of blocks won | 562 | 236 | 1,725 | 621 | ||||||||||||
Transaction fees as a percentage of total | 13.4 | % | 1.9 | % | 7.7 | % | 1.3 | % | ||||||||
Reconciliation to Adjusted EBITDA: | ||||||||||||||||
Net income (loss) | $ | 151,826 | $ | (391,598 | ) | $ | 261,173 | $ | (694,022 | ) | ||||||
Exclude: Interest expense | 1,214 | 4,667 | 10,350 | 14,981 | ||||||||||||
Exclude: Income tax expense (benefit) | 16,075 | (23,331 | ) | 16,426 | (24,232 | ) | ||||||||||
EBIT | 169,115 | (410,262 | ) | 287,949 | (703,273 | ) | ||||||||||
Exclude: Depreciation and amortization | 72,550 | 13,827 | 181,590 | 78,709 | ||||||||||||
EBITDA | 241,665 | (396,435 | ) | 469,539 | (624,564 | ) | ||||||||||
Exclude: Stock compensation expense | 18,737 | 5,720 | 32,644 | 24,595 | ||||||||||||
Exclude: Net gain from extinguishment of debt | — | — | (82,267 | ) | — | |||||||||||
Exclude: Total impairments due to vendor bankruptcy filing | — | 16,674 | — | 55,674 | ||||||||||||
Exclude: Impairment of patents | — | — | — | 919 | ||||||||||||
Adjusted EBITDA (5) | $ | 260,402 | $ | (374,041 | ) | $ | 419,916 | $ | (543,376 | ) |
(5) 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) impairments of patents and (iii) losses on 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