Bitcoin Miner Marathon Digital Misses Q1 Revenue Expectation On Operational Challenges

In the initial three quarters of the year, the company extracted only 2,811 bitcoins, marking a significant decrease of 34% compared to the preceding quarter.

During the past quarter, Bitcoin generation and subsequent income for the company were adversely affected due to unforeseen equipment malfunctions, necessary transmission line upkeep, and greater than anticipated weather-related interruptions at Garden City and various other locations.

Marathon reported earnings per share of $1.26 for the first quarter, which initially surpassed analysts’ expectations of a mere cent. However, this figure doesn’t align with projections due to newly implemented FASB accounting rules regarding fair value. The significant increase in bitcoin prices led to favorable mark-to-market adjustments.

The miner intends to adhere to its prediction from 2024, which targets a rate of 50 exahashes per second (EH/s). It also anticipates further expansion in the year 2025.

Marthon’s stock dropped approximately 1.5% during after-hours trading on Thursday. So far in 2021, the value of its shares has decreased by 26%. In contrast, Riot Platforms (RIOT) has experienced a more significant decline, with its stock price dropping by 40%.