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Marathon reported a difficult quarter with revenue of $175 million, missing the $210 million analysts expected. The company lost $611 million, a sharp swing from the profit it made a year ago. While the company increased its hashrate, the total computing power it uses to secure the Bitcoin network, by 22 percent, this extra power did not translate into higher profits.
The core issue is the rising cost of doing business. It now costs Marathon about $38,690 in energy alone to mine a single Bitcoin at its owned sites. When you add in the cost of the specialized computers and debt, the math becomes difficult unless Bitcoin prices stay high. Marathon is trying to pivot toward owning its own power plants to lower these costs, but for now, the business is spending heavily to maintain its position while bringing in less cash.
See the full quarter, and how our tracked metrics did
Source: 8-K filing
The company reports its latest results today after the market closes. Analysts expect earnings of about 17 cents per share, though the company has only beaten expectations once in the last two years.
Beyond the numbers, the focus is on how well the company is shifting from just mining Bitcoin to owning the power plants and data centers that run it. We are watching for updates on energy costs and whether they have signed any new deals to host AI computing, which could provide a more stable source of cash than the volatile crypto market.
The company appointed Craig Hart and Nancy Novak to its board of directors. Both have experience in energy investing and building large-scale data centers, which are the massive facilities that house computer systems.
This move supports the company's plan to own more of its own power and infrastructure. Having experts in these fields on the board helps as the company tries to expand beyond Bitcoin mining and into the competitive market for AI data centers.
Source: 8-K filing
Piper Sandler lowered its price target for the stock by about 19 percent. While the firm still recommends owning the shares, the lower target suggests they see less room for the stock to rise in the near term than they did before. This comes as the company works through its transition into a broader digital infrastructure business.
Source: Piper Sandler
The company reached an agreement with HIF to take over a strategic site in Texas with access to about 2 gigawatts of power capacity. For context, that is enough electricity to power over a million homes, making it a significant addition to their infrastructure.
This deal is a major step in the company's pivot toward owning its own power sources. By controlling the land and the electricity, they can lower the costs of mining Bitcoin and potentially build out new space for AI and high-performance computing.
Source: 8-K filing
The company has a choppy track record, missing expectations in five of the last eight quarters. This makes it difficult to rely on management's short-term forecasts until they show more consistent execution.
| Expectation | |
|---|---|
| EPS | $-0.33 |
| Revenue | $184M |
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