On Tuesday, August 8, Bitcoin mining giant Marathon Digital Holdings Ltd. (NASDAQ: MARA) reported its second-quarter earnings for the year 2023. The Bitcoin miner reported a surge in revenue with losses narrowing.
Amid the surge in the Bitcoin price this year, Marathon Digital has increased sales of BTC, thereby profiting from the upward momentum. Headquartered in Las Vegas, Marathon saw its net loss shrink to $19.13 million, or 13 cents per share, compared to $212.6 million, or $1.94, in the same period last year. Revenue surged more than threefold to $81.8 million, though it fell short of analysts’ expectations of $83.45 million, according to a Bloomberg survey. The company also faced some heat of the SEC’s actions.
As said, since the beginning of the year, Marathon Digital has been selling its BTC holdings as a means of offsetting the operating costs. During the second quarter, the Bitcoin mining giant sold a total of 1,800 thereby realizing the net proceeds of $17.6 million. As of June 30, Marathon owns a total of 12,538 Bitcoins and over 150,000 mining rigs in operation.
The Marathon Digital (MARA) stock price gained 4.31% on Tuesday, August 8, trading at $15.72. The MARA stock is already up by 350% since the beginning of 2023 while Bitcoin has gained 80% in the same period.
Marathon Digital Expanding its Bitcoin Mining Facilities
Since crypto mining was banned in China in May 2021, Marathon has become one of the fastest-growing mining companies in the US. They’ve expanded their computing power significantly, and they raised a lot of money by selling shares and getting loans. In addition to their operations in the US, including places like North Dakota and Texas, they’ve also been working on Bitcoin mining facilities in Abu Dhabi.
Even though Bitcoin prices were low, power costs were high. But Marathon and other companies chose to expand even during the difficult times. They did this despite challenges like the market not doing well and electricity costs going up, which made it harder to make money from mining.
Miners are working hard to improve by getting new, more efficient machines. This is important because, in 2024, there will be a big change in how much miners earn, so they want to be ready. In 2024, the Bitcoin network will undergo the much-awaited halving event. This will reduce the miner rewards by half, from 6.25 currently to 3.125 after halving.
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