Marathon Digital Announces Q4 Financial Results With 58.4% Decline In Revenue
Key Points:
- Marathon Digital Holdings published its fourth-quarter and fiscal-year 2022 financial and operational performance.
- According to the company, revenue for the fourth quarter of 2022 fell 58.4% yearly to $28.4 million.
- The results were impacted by a fourth-quarter impairment charge linked to the carrying value of mining rigs and advance to suppliers and a reduction in the carrying value of digital assets.
Marathon Digital Holdings said that revenue for the fourth quarter of the year fell 58.4% year on year to $28.4 million.
Last month, Marathon canceled an earnings call and postponed the publication of results to fix accounting irregularities linked to digital asset impairment.
According to the most recent report, full-year revenue for 2022 decreased to $117.8 million, a 26% decrease from a restated $159.2 million in 2021. The net loss for the fiscal year was $686.7 million, compared to a loss of $37.1 million in 2021.
The results were impacted by a $332.9 million fourth-quarter impairment charge linked to the carrying value of mining rigs and advance to suppliers, as well as $317.6 million in decreases in the carrying value of digital assets.
The lower total margin of $150.4 million was due to the impact of lower Bitcoin prices on revenues ($77.3 million), accelerated costs related to the previously reported exit from the Hardin facility ($54.3 million), and increased costs depreciation due to an increase in the number of mining rigs in operation ($27.8 million).
Bitcoin output climbed by 42% to a record 1,562 in the fourth quarter of 2022. In 2022, the annual output will have climbed by 30% to 4,144. Marathon’s chairman and CEO, Fred Thiel, stated:
“2022 was a difficult year to be a Bitcoin miner, but our team met each challenge head on, and we emerged smarter and more resilient.”
In addition, the CEO has set the following objectives for 2023:
“We have two primary goals for 2023: the first is to energize our previously purchased mining rigs to reach our target of 23 exahashes by the middle of this year, and the second is to optimize our performance – to become more effective and more efficient.”
Marathon claimed that the action freed up the 3,132 Bitcoin held as collateral by Silvergate Bank for the loan in February 2023, with the intention of utilizing it to acquire Bitcoin mining equipment and support its mining activities. According to the company, this would result in a $50 million debt reduction and a $5 million decrease in yearly borrowing expenses.
DISCLAIMER: The Information on this website is provided as general market commentary and does not constitute investment advice. We encourage you to do your own research before investing.
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Harold
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Marathon Digital Announces Q4 Financial Results With 58.4% Decline In Revenue
Key Points:
- Marathon Digital Holdings published its fourth-quarter and fiscal-year 2022 financial and operational performance.
- According to the company, revenue for the fourth quarter of 2022 fell 58.4% yearly to $28.4 million.
- The results were impacted by a fourth-quarter impairment charge linked to the carrying value of mining rigs and advance to suppliers and a reduction in the carrying value of digital assets.
Marathon Digital Holdings said that revenue for the fourth quarter of the year fell 58.4% year on year to $28.4 million.
Last month, Marathon canceled an earnings call and postponed the publication of results to fix accounting irregularities linked to digital asset impairment.
According to the most recent report, full-year revenue for 2022 decreased to $117.8 million, a 26% decrease from a restated $159.2 million in 2021. The net loss for the fiscal year was $686.7 million, compared to a loss of $37.1 million in 2021.
The results were impacted by a $332.9 million fourth-quarter impairment charge linked to the carrying value of mining rigs and advance to suppliers, as well as $317.6 million in decreases in the carrying value of digital assets.
The lower total margin of $150.4 million was due to the impact of lower Bitcoin prices on revenues ($77.3 million), accelerated costs related to the previously reported exit from the Hardin facility ($54.3 million), and increased costs depreciation due to an increase in the number of mining rigs in operation ($27.8 million).
Bitcoin output climbed by 42% to a record 1,562 in the fourth quarter of 2022. In 2022, the annual output will have climbed by 30% to 4,144. Marathon’s chairman and CEO, Fred Thiel, stated:
“2022 was a difficult year to be a Bitcoin miner, but our team met each challenge head on, and we emerged smarter and more resilient.”
In addition, the CEO has set the following objectives for 2023:
“We have two primary goals for 2023: the first is to energize our previously purchased mining rigs to reach our target of 23 exahashes by the middle of this year, and the second is to optimize our performance – to become more effective and more efficient.”
Marathon claimed that the action freed up the 3,132 Bitcoin held as collateral by Silvergate Bank for the loan in February 2023, with the intention of utilizing it to acquire Bitcoin mining equipment and support its mining activities. According to the company, this would result in a $50 million debt reduction and a $5 million decrease in yearly borrowing expenses.
DISCLAIMER: The Information on this website is provided as general market commentary and does not constitute investment advice. We encourage you to do your own research before investing.
Join us to keep track of news: https://linktr.ee/coincu
Harold
Coincu News
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