As a seasoned researcher with a keen interest in blockchain technology and its applications, I find MARA Holdings Inc’s Q3 earnings report intriguing. While it’s always a bittersweet feeling to see a drop in share price after a promising day, I can appreciate the strategic moves made by the company.
In post-market trading, Bitcoin mining company MARA Holdings Inc (formerly known as Marathon Digital) dropped by 9.1%, due to the fact that its Q3 earnings failed to meet analysts’ projected revenue figures.
In simple terms, MARA’s earnings report for the third quarter, published on November 12, reported a loss of $0.34 per share, which was slightly more than what Wall Street analysts had predicted. Despite this, the company’s revenue increased by 34.5% compared to the same period last year, reaching $131.6 million. However, this figure fell below the expected revenue of $148.1 million.
In the third quarter, the mining firm experienced an additional $40 million in operational costs, leading to a total net loss of approximately $124.8 million for that period.
After the market close, MARA dropped approximately 9.1%, ending at $22.94 per share. This happened following a rise of 0.88% to $25.23 earlier in the day, as reported by Google Finance. The decrease occurred one day after MARA experienced a surge of 30% on November 11, due to Bitcoin’s price increase towards $90,000. So far this year, MARA’s share price has risen by 10%.
In Q3, MARA reported mining an additional 147 Bitcoin blocks, boosting its hash rate by 17.1%, which reached almost 37 exahashes per second (EH/s). This significant increase in mining activity helped reduce their overall net loss.
MARA boosted its Bitcoin reserves by 45%, now holding a total of 26,747 BTC, which equates to approximately $2.36 billion. This increase occurred during Q3, making it the first complete quarter in which MARA implemented a new strategy to keep all Bitcoin received as per its revised treasury policy.
It also forked out $100 million from its cash reserves to buy more Bitcoin in Q3.
As we keep expanding our mining ventures and growing our company, we’ll seize chances when they come up to buy Bitcoin, especially in times of market decline,” MARA stated simply.
As a researcher, I’d like to highlight that although this capacity expansion wasn’t reflected in MARA’s Q3 financial statement, I discovered on November 11th that the Bitcoin miner under my observation has procured an extra 372 megawatts (MW) of power capacity at its Ohio facility. Currently, 152 MW out of this total is already functional and operational.
The pace of U.S. computing power is increasing rapidly. Today, we’re thrilled to share:
— MARA (@MARAHoldings) November 11, 2024
MARA hasn’t specified an exact timeline for activating the remaining 220 MW, but emphasized that it typically takes between 12 to 18 months before any income is generated from such projects.
“Investing in mining infrastructure typically has a 12- to 18-month timeline to generate revenue.”
MARA is the world’s largest public Bitcoin miner, boasting a market cap of $7.43 billion.
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2024-11-13 03:54