Marathon Digital Holdings, Inc.
(NASDAQ:MARA) ("Marathon"
or "Company"), global leader in leveraging digital asset
compute to support the energy transformation, reported its
financial and operational results for the first quarter ended March
31, 2024.
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 of March 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 Fred Thiel, Marathon’s chairman and chief
executive officer. “In less than four months we initiated, closed,
and integrated the acquisitions of our first three sites. As a
result, we doubled the size of our portfolio to 1.1 gigawatts of
capacity, 54% of which we now directly own and operate. After
bringing our first products to market in March, we secured our
first paying customers for MARA firmware and began building a
robust sales pipeline for our two-phase immersion system.
“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 $165.2 million, improved net income to a record $337.2
million, and generated adjusted EBITDA of $528.8 million.
“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 $1.6
billion of liquidity, we are now targeting 50 exahash of energized
hash rate by the end of 2024 and additional growth in 2025. We look
forward to continuing to build Marathon into a diverse, global,
technology company that leverages digital asset compute to build a
more sustainable and inclusive future.”
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 Hash Rate
(EH/s) (2) |
|
|
27.8 |
|
|
|
11.5 |
|
|
|
142 |
% |
|
|
27.8 |
|
|
|
24.7 |
|
|
|
13 |
% |
Average
Operational Hash Rate (EH/s) (3) |
|
|
18.2 |
|
|
|
N/A |
|
|
|
N/A |
|
|
|
18.2 |
|
|
|
19.4 |
|
|
|
(6 |
)% |
Installed Hash Rate
(EH/s) (4) |
|
|
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 $337.2 million, or
$1.26 per diluted share, during the three months ended March 31,
2024, from net income of $118.7 million, or $0.72 per diluted
share, in the same period last year. The increase in net income was
primarily driven by the favorable mark-to-market adjustment of
digital assets from the newly adopted FASB fair value accounting
rules, ASU No. 2023-08, Accounting for and Disclosure of Crypto
Assets, which requires on-going measurement of crypto assets to
fair value.
Revenues increased 223% to $165.2 million in the
first quarter of 2024 from $51.1 million in the first quarter of
2023. The increase in revenue was primarily driven by an $82.9
million increase in the average price of bitcoin mined, a $10.4
million increase in bitcoin production, and $20.8 million in
revenues generated from providing hosting services as a result of
the acquisition of GC Data Center Equity Holdings, LLC on January
12, 2024. Bitcoin production, and therefore revenues, generated
during the quarter was negatively impacted by unexpected equipment
failures, transmission line maintenance, and higher than
anticipated weather-related curtailments at Garden City and other
sites during the quarter. The average price of bitcoin mined was
126% higher than the average price of bitcoin mined in the prior
year period. Average daily bitcoin was 30.9 bitcoin in the current
year period compared with 24.4 in the prior year period.
The Company sold 26% of the bitcoin it produced
during the quarter to fund operating costs.
Gains on digital assets were $488.8 million
during the first quarter of 2024, compared to $137.4 million
during the first quarter of 2023. The $351.4 million, or
approximately 256% increase, was primarily related to the price of
bitcoin increasing to $71,289 as of March 31, 2024, compared to
$28,474 for the prior year period ended March 31, 2023.
Adjusted EBITDA increased 266% to $528.8 million
in the first quarter of 2024 from $144.5 million in the first
quarter of 2023. The $384.3 million year-over-year improvement was
primarily driven by favorable fair value adjustments to digital
assets of $488.8 million and higher production of bitcoin.
First Quarter
2024 Earnings Webcast and Conference
Call
Marathon Digital Holdings will hold a webcast
and conference call today, May 9, at 5:00 p.m. Eastern time to
discuss its financial results for the quarter ended March 31,
2024.
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
DetailsDate: Today, May 9, 2024Time: 5:00 p.m. Eastern time
(2:00 p.m. Pacific 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
December 31, 2023, filed with the SEC on February 28, 2024
(the "Annual Report"). If any of these risks were to occur, our
business, financial condition, results of operations or liquidity
would likely suffer. In that event, the value of our securities
could decline, and you could lose all or part of your investment.
The risks and uncertainties we describe are not the only ones we
face. Additional risks not presently known to us or that we
currently deem immaterial may also impair our business, financial
condition, results of operations or liquidity. In addition, our
past financial performance may not be a reliable indicator of
future performance, and historical trends should not be used to
anticipate future results. See "Forward-Looking Statements"
below.
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 Securities and Exchange Commission. We cannot assure
you that the events and circumstances reflected in the
forward-looking statements will be achieved or occur, and actual
results could differ materially from those expressed or implied in
the forward-looking statements. The forward-looking statements made
in this press release relate only to events as of the date of this
press release. We undertake no obligation to update any
forward-looking statement to reflect events or circumstances after
the date on which the statement is made.
About Marathon Digital
Holdings
Marathon Digital Holdings (NASDAQ:MARA) is a
global leader in digital asset compute that develops and deploys
innovative technologies to build a more sustainable and inclusive
future. Marathon secures the world’s preeminent blockchain ledger
and supports the energy transformation by converting clean,
stranded, or otherwise underutilized energy into economic
value.
For more information, visit www.mara.com, or
follow us on:
Twitter: @MarathonDHLinkedIn:
www.linkedin.com/company/marathon-digital-holdingsFacebook:
www.facebook.com/MarathonDigitalHoldingsInstagram:
@marathondigitalholdings
Marathon Digital
Holdings Company Contact:
Telephone: 800-804-1690Email: ir@mara.com
Marathon Digital Holdings Media
Contact:Email: marathon@wachsman.com
MARATHON DIGITAL HOLDINGS, INC. AND
SUBSIDIARIESCONDENSED CONSOLIDATED
STATEMENTS OF OPERATIONS
|
|
Three Months Ended March 31, |
|
(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 Hash Rate (Exahashes
per second) - at end of period (1) |
|
|
27.8 |
|
|
|
15.4 |
|
Energized Hash Rate (Exahashes
per second) - at end of period (1) |
|
|
27.8 |
|
|
|
11.5 |
|
Average operational Hash Rate
(Exahashes per second) (1) |
|
|
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 Hash Rate as
the total hash rate that could theoretically be generated if all
mining rigs that have been operational / energized are currently in
operation and running at 100% of the manufacturers’ specifications
(includes mining servers that are offline for maintenance or
similar reasons). The Company uses this metric as an indicator of
progress in bringing rigs on-line. The Company defines Avg.
Operational Hash Rate as the average hash rate that was actually
generated during the period from all operational miners. The
Company uses this metric as an indicator of its operational
progress. The Company defines Installed Hash Rate as the sum of
Energized Hash Rate and hash rate that has been installed but is
not yet operational (e.g. mining rigs that have been installed, but
are not yet energized and in operation). The Company uses this
metric as an indicator of progress in deploying mining rigs at its
production sites. Cost per Petahash Rate per day is calculated
using mining cost of revenues, excluding depreciation and
amortization, divided by the Average operational Hash Rate,
excluding the Company’s share of the hash rate for the equity
method investee, the ADGM entity. Hash rates are estimates based on
the manufacturers’ specifications. All figures are estimates and
rounded.
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 Hash Rate (b) the Company cannot predict
when installed and energized rigs may be offline for any reason,
including curtailment or machine failure and (c) the Company cannot
predict Global Hash Rate (and therefore the Company’s share of the
Global Hash Rate), which has significant impact on the Company’s
ability to generate bitcoin in any given period.
(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 Securities and Exchange
Commission. Management uses adjusted EBITDA, total margin excluding
depreciation and amortization, and the supplemental information
provided herein as a means of understanding, managing, and
evaluating business performance and to help inform operating
decision making. The Company relies primarily on our condensed
consolidated financial statements to understand, manage, and
evaluate our financial performance and use the non-GAAP financial
measures only supplementally.
Marathon Digital (NASDAQ:MARA)
과거 데이터 주식 차트
부터 4월(4) 2024 으로 5월(5) 2024
Marathon Digital (NASDAQ:MARA)
과거 데이터 주식 차트
부터 5월(5) 2023 으로 5월(5) 2024