Marathon Digital Beats Q3 Earnings Estimate, but Misses on Revenue

Marathon Digital’s (MARA) third-quarter “non-GAAP net income” of $0.85 per share beat analysts’ average estimate of $0.43, while its revenue of $51.7 million missed the estimate of $67.4 million, according to FactSet.

• The company’s third-quarter revenue rose over 6,000% year-over-year, according to a statement.
• Marathon mined 1,252 bitcoin in the third quarter, which was a 91% increase from the previous quarter.
• At the end of the quarter, it held 7,035 bitcoin with a fair-market value of $307.6 million.
• The miner expects its previously purchased 130,000 mining machines to come online between now and the middle of 2022.
• Marathon noted that global supply-chain issues are affecting the crypto mining industry, and the company recently started chartering planes to expedite the delivery of its mining computers.
• The shares of the bitcoin miner were down about 1.5% in early trading Wednesday, after initially rising about 4% following the release of the results. They are up more than 600% so far this year.
• Non-GAAP (generally accepted accounting principles) income excludes the impact of depreciation and amortization of fixed assets, impairment losses on mined cryptocurrency, server maintenance contract amortization and stock compensation expense. The metric includes the change in fair value of the Marathon Digital’s investment fund, which purchased 4,812.66 BTC for about $150 million in January.