Marathon Digital stock slips after missing crypto mining revenue expectations

Time:2022-01-03 Source: 882 views Trending Copy share

Even as Bitcoin (BTC-USD) hits a new record high, Marathon Digital (NASDAQ:MARA) shares edge lower after the company posted somewhat worse-than-expected Q3 results.
Shares of MARA slide 1.4% intra-day, though not far off from its all-time high at $83.45 per share on Tuesday.
Still, Q3 diluted EPS of $0.85 beats the $0.43 consensus estimate and is substantially higher than the $0.02 loss in Q3 of last year.
However, Q3 crypto mining revenues of $51.7M misses the $67.4M estimate, surging from $835.2K in the same period a year ago.
The cost of revenue of $10.3M in Q3 climbs nearly 10-fold from $1.64M in the year-ago quarter.
Q3 total operating expenses of $116M soars from $2.83M in Q3 2020.
Realized gain on sale of digital currencies were $8.2M, down from $11.21M in the year-ago quarter.
Q3 interest income of $84.5M vs. $2.5M in Q3 2020.
The company has a total of $64.4M held in digital currencies, up from just $2.3M in Q3 2020.
"We held approximately 7,035 BTC at the end of the third quarter, and we are continuing to grow these holdings each month as we increase our hash rate and maintain our strategy to 'hodl' the bitcoin we mine," said CEO Fred Thiel. "Beyond bitcoin production, the quarter was highlighted by enhancements to our leadership team, the purchase of new miners from Bitmain, and the first bitcoin miner other than Marathon being added to MaraPool."

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