MARA
(NASDAQ:MARA)
(“MARA” or the “Company”), a global leader in leveraging
digital asset compute to support the energy transformation,
reported its financial and operational results for the quarter
ended June 30, 2024.
Second Quarter 2024 Financial and
Operational Highlights
- |
Energized hash rate increased 78% to 31.5 EH/s in Q2 2024 from 17.7
EH/s in Q2 2023 |
- |
Produced 2,058 bitcoin (“BTC”) during Q2 2024, a 30% decrease from
Q2 2023 |
- |
Revenues increased 78% to $145.1 million in Q2 2024 from $81.8
million in Q2 2023 |
- |
Net loss increased to $199.7 million, or $0.72 loss per diluted
share, in Q2 2024 from a net loss of $9.0 million, or $0.07 loss
per diluted share, in Q2 2023. Net loss includes $148.0 million
loss on fair value of digital assets. |
- |
Adjusted EBITDA decreased to a loss of $85.1 million in Q2 2024
from $35.8 million in Q2 2023 |
- |
Combined unrestricted cash and cash equivalents and BTC increased
to $1.4 billion as of June 30, 2024 |
- |
Organized the company into three strategic business teams – Utility
Scale Mining, Energy Harvesting, and Technology – to better align
MARA’s internal structure with its pursuit of growth
opportunities |
- |
Successfully acquired and closed the Garden City data center in
Texas |
- |
Signed a partnership with the government of Kenya aimed at
developing underutilized energy assets |
- |
Diversified the Company’s portfolio of digital asset compute
through the successful launch of Kaspa mining operations |
Management Commentary
“During the second quarter of 2024, our BTC
production was impacted by unexpected equipment failures and
transmission line maintenance at the Ellendale site operated by
Applied Digital, increased global hash rate, and the April halving
event,” said Fred Thiel, MARA’s chairman and chief executive
officer. “However, I’m pleased to report that transformer issues at
the Ellendale site were mitigated and remediated post quarter end,
and our hash rate recovery effort is complete. We reached an
all-time high installed hash rate of 31.5 exahash in the second
quarter and continue to target 50 exahash of energized hash rate by
the end of 2024 with additional growth in 2025.
“We are beginning to lay the foundation for MARA
to become a globally diversified company that leverages digital
asset compute to build a more sustainable and inclusive future.
During the quarter, we organized the internal structure of the
business to better align with our growth opportunities, sharpen our
strategic focus, bolster accountability, and accelerate our speed
and agility as we scale. MARA is now a streamlined organization
consisting of three specialized business teams: Utility Scale
Mining, Energy Harvesting, and Technology.
“Revenues increased 78% to $145 million for the
quarter compared to the second quarter of 2023 as we produced 2,058
BTC, an average of 23 BTC a day. We ended the quarter with 18,488
BTC on the balance sheet and subsequently purchased an additional
$100 million worth of BTC. Our holdings now exceed 20,000 BTC. We
recently announced a shift in our treasury policy and adopted a
full HODL approach to retain all BTC going forward, reflecting our
confidence in the long-term value of BTC and our belief that it is
the world’s best treasury reserve asset.”
Second Quarter 2024 Production
Highlights
|
|
Year-Over-Year Comparison |
|
|
Prior Quarter Comparison |
|
Metric(1) |
|
Q2 2024 |
|
|
Q2 2023 |
|
|
% Δ |
|
|
Q2 2024 |
|
|
Q1 2024 |
|
|
% Δ |
|
BTC
Produced |
|
|
2,058 |
|
|
|
2,926 |
|
|
|
(30 |
)% |
|
|
2,058 |
|
|
|
2,811 |
|
|
|
(27 |
)% |
Average BTC Produced per Day |
|
|
22.9 |
|
|
|
32.2 |
|
|
|
(29 |
)% |
|
|
22.9 |
|
|
|
30.9 |
|
|
|
(26 |
)% |
Share of available miner rewards (1) |
|
|
3.7 |
% |
|
|
3.3 |
% |
|
|
NA |
|
|
|
3.7 |
% |
|
|
3.1 |
% |
|
|
NA |
|
Energized Hash Rate
(EH/s) (2) |
|
|
31.5 |
|
|
|
17.7 |
|
|
|
78 |
% |
|
|
31.5 |
|
|
|
27.8 |
|
|
|
13 |
% |
Average Operational Hash Rate (EH/s) (3) |
|
|
24.0 |
|
|
|
12.1 |
|
|
|
98 |
% |
|
|
24.0 |
|
|
|
18.2 |
|
|
|
32 |
% |
Installed Hash Rate
(EH/s) (4) |
|
|
31.5 |
|
|
|
21.8 |
|
|
|
44 |
% |
|
|
31.5 |
|
|
|
27.8 |
|
|
|
13 |
% |
NA - Not applicable1. Defined as the total
amount of block rewards including transaction fees that MARA earned
during the period divided by the total amount of block rewards and
transaction fees awarded by the Bitcoin network during the
period.2. Defined as the amount of hash rate that could
theoretically be generated if all miners that have been energized
are currently in operation including miners that may be temporarily
offline. Hash rates are estimates based on the manufacturers’
specifications. All figures are rounded.3. Defined as the average
hash rate that was actually generated during the period from all
operational miners. All figures are estimates and are rounded.4.
Defined as the sum of energized hash rate (see above) and hash rate
that has been installed but not yet energized. Hash rates are
estimates based on the manufacturers’ specifications. All figures
are rounded.
Second Quarter 2024 Financial
Results
Net loss increased to $199.7 million, or $0.72
loss per diluted share, during the three months ended June 30,
2024, from a net loss of $9.0 million, or $0.07 loss per diluted
share, in the same period last year. The decrease in earnings was
primarily driven by the unfavorable fair value of digital assets
from the newly adopted fair value accounting rules issued by the
Financial Accounting Standards Board, ASU No. 2023-08, Accounting
for and Disclosure of Crypto Assets, which requires ongoing
measurement of crypto assets to fair value.
Adjusted EBITDA decreased to a loss of $85.1
million in the second quarter of 2024 from a gain of $35.8 million
in the second quarter of 2023. The $120.9 million decline was
primarily driven by unfavorable fair value adjustments to digital
assets of $148.0 million and lower production of BTC.
Revenues increased 78% to $145.1 million in the
second quarter of 2024 from $81.8 million in the second quarter of
2023. The increase in revenue was primarily driven by a $78.6
million increase in the average price of BTC mined, partially
offset by a $23.9 million decrease in BTC production, and the
inclusion of $8.7 million in revenues generated from providing
hosting services as a result of the acquisition of GC Data Center
Equity Holdings, LLC in January 2024. The average price of BTC
mined in the second quarter of 2024 was 136% higher than in the
prior year period. Average daily BTC production was 22.9 BTC in the
second quarter of 2024 compared to 32.2 BTC in the prior year
period. The Company produced 868 less BTC in the three months ended
June 30, 2024, compared to the prior year period, primarily due to
the halving event in April 2024, increased global hash rate, and
the impact of unexpected equipment failures at third-party operated
sites and transmission line maintenance, partially offset by an
improvement in average operational hash rate. Subsequent to June
30, 2024, the third- party equipment failure and transmission line
maintenance was completely resolved.
The Company sold 51% of the BTC it produced
during the quarter to fund operating costs.
Change in fair value of digital assets was a
$148.0 million loss during the second quarter of 2024 compared to
$25.2 million during the second quarter of 2023. The $173.2
million, or approximately 688% decrease, was primarily related to
the unfavorable mark-to-market adjustment of digital assets and a
decrease in BTC production due to the halving event in April.
Second Quarter
2024 Earnings Webcast and Conference
Call
MARA will hold a webcast and conference call
today, August 1, 2024, at 5:00 p.m. Eastern time to discuss its
financial results for the quarter ended June 30, 2024.
To register to participate in the conference
call or to listen to the live audio webcast, please use this link.
The webcast will also be broadcast live and available for replay
via the investor relations section of our website.
Earnings Webcast and Conference Call
DetailsDate: Thursday, August 1, 2024Time: 5:00 p.m. Eastern time
(2:00 p.m. Pacific time)Registration link: LINK
If you have any difficulty connecting with the
conference call, please contact MARA’s investor relations team at
ir@mara.com.
Investor Notice
Investing in our securities involves a high
degree of risk. Before making an investment decision, you should
carefully consider the risks, uncertainties and forward-looking
statements described under the heading “Risk Factors” in our most
recent annual report on Form 10-K and any other periodic reports
that we may file with the U.S. Securities and Exchange Commission
(the “SEC”). If any of these risks were to occur, our business,
financial condition or results of operations would likely suffer.
In that event, the value of our securities could decline, and you
could lose part or all of your investment. The risks and
uncertainties we describe are not the only ones facing us.
Additional risks not presently known to us or that we currently
deem immaterial may also impair our business operations. In
addition, our past financial performance may not be a reliable
indicator of future performance, and historical trends should not
be used to anticipate results in the future. See “Forward-Looking
Statements” below.
Forward-Looking Statements
This press release contains forward-looking
statements within the meaning of the federal securities laws. All
statements, other than statements of historical fact, included in
this press release are forward-looking statements. The words “may,”
“will,” “could,” “anticipate,” “expect,” “intend,” “believe,”
“continue,” “target” and similar expressions or variations or
negatives of these words are intended to identify forward-looking
statements, although not all forward-looking statements contain
these identifying words. Such forward-looking statements include,
among other things, statements related to our strategy, future
operations, growth targets, BTC treasury policy and the long-term
value of BTC. Such forward-looking statements are based on
management’s current expectations about future events as of the
date hereof and involve many risks and uncertainties that could
cause our actual results to differ materially from those expressed
or implied in our forward-looking statements. Subsequent events and
developments, including actual results or changes in our
assumptions, may cause our views to change. We do not undertake to
update our forward-looking statements except to the extent required
by applicable law. Readers are cautioned not to place undue
reliance on such forward-looking statements. All forward-looking
statements included herein are expressly qualified in their
entirety by these cautionary statements. Our actual results and
outcomes could differ materially from those included in these
forward-looking statements as a result of various factors,
including, but not limited to, the factors set forth under the
heading “Risk Factors” in our most recent annual report on Form
10-K and any other periodic reports that we may file with the
SEC.
About MARA
MARA (NASDAQ:MARA) is a global leader in digital
asset compute that develops and deploys innovative technologies to
build a more sustainable and inclusive future. MARA secures the
world’s preeminent blockchain ledger and supports the energy
transformation by converting clean, stranded, or otherwise
underutilized energy into economic value.
For more information, visit www.mara.com, or
follow us on:
Twitter: @MarathonDHLinkedIn:
www.linkedin.com/company/marathon-digital-holdingsFacebook:
www.facebook.com/MarathonDigitalHoldingsInstagram:
@marathondigitalholdings
MARA Company Contact:
Telephone: 800-804-1690Email: ir@mara.com
MARA Media Contact:Email:
marathon@wachsman.com
MARATHON DIGITAL HOLDINGS, INC. AND
SUBSIDIARIESCONDENSED CONSOLIDATED STATEMENTS OF
OPERATIONS
|
|
Three Months Ended June 30, |
|
|
Six Months Ended June 30, |
|
(in
thousands, except share and per share data) |
|
2024 |
|
|
2023 |
|
|
2024 |
|
|
2023 |
|
Total
revenues |
|
$ |
145,139 |
|
|
$ |
81,759 |
|
|
$ |
310,337 |
|
|
$ |
132,891 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Costs and
expenses |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cost of revenues |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Mining and hosting services |
|
|
(93,887 |
) |
|
|
(55,222 |
) |
|
|
(184,098 |
) |
|
|
(88,599 |
) |
Depreciation and amortization |
|
|
(87,808 |
) |
|
|
(37,275 |
) |
|
|
(165,803 |
) |
|
|
(55,008 |
) |
Total cost of revenues |
|
|
(181,695 |
) |
|
|
(92,497 |
) |
|
|
(349,901 |
) |
|
|
(143,607 |
) |
Operating expenses |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
General and administrative expenses |
|
|
(57,118 |
) |
|
|
(19,840 |
) |
|
|
(130,429 |
) |
|
|
(34,976 |
) |
Change in fair value of digital assets |
|
|
(147,999 |
) |
|
|
25,162 |
|
|
|
340,808 |
|
|
|
162,560 |
|
Change in fair value of derivative |
|
|
38,251 |
|
|
|
— |
|
|
|
22,999 |
|
|
|
— |
|
Research and development |
|
|
(3,845 |
) |
|
|
(651 |
) |
|
|
(6,311 |
) |
|
|
(860 |
) |
Early termination expenses |
|
|
(5,660 |
) |
|
|
— |
|
|
|
(27,757 |
) |
|
|
— |
|
Amortization of intangible assets |
|
|
(19,470 |
) |
|
|
— |
|
|
|
(22,439 |
) |
|
|
— |
|
Total operating expenses |
|
|
(195,841 |
) |
|
|
4,671 |
|
|
|
176,871 |
|
|
|
126,724 |
|
Operating income
(loss) |
|
|
(232,397 |
) |
|
|
(6,067 |
) |
|
|
137,307 |
|
|
|
116,008 |
|
Gain on investments |
|
|
— |
|
|
|
— |
|
|
|
5,236 |
|
|
|
— |
|
Loss on hedge instruments |
|
|
— |
|
|
|
— |
|
|
|
(2,292 |
) |
|
|
— |
|
Equity in net earnings of unconsolidated affiliate |
|
|
49 |
|
|
|
— |
|
|
|
1,308 |
|
|
|
— |
|
Net loss from extinguishment of debt |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
(333 |
) |
Interest income |
|
|
2,188 |
|
|
|
118 |
|
|
|
4,761 |
|
|
|
910 |
|
Interest expense |
|
|
(1,369 |
) |
|
|
(2,840 |
) |
|
|
(2,625 |
) |
|
|
(6,600 |
) |
Other non-operating income |
|
|
213 |
|
|
|
30 |
|
|
|
213 |
|
|
|
30 |
|
Income (loss) before
income taxes |
|
|
(231,316 |
) |
|
|
(8,759 |
) |
|
|
143,908 |
|
|
|
110,015 |
|
Income tax benefit
(expense) |
|
|
31,657 |
|
|
|
(203 |
) |
|
|
(6,394 |
) |
|
|
(278 |
) |
Net income
(loss) |
|
$ |
(199,659 |
) |
|
$ |
(8,962 |
) |
|
$ |
137,514 |
|
|
$ |
109,737 |
|
Series A preferred stock accretion to redemption value |
|
|
— |
|
|
|
(2,121 |
) |
|
|
— |
|
|
|
(2,121 |
) |
Net income (loss)
attributable to common stockholders |
|
$ |
(199,659 |
) |
|
$ |
(11,083 |
) |
|
$ |
137,514 |
|
|
$ |
107,616 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income (loss) per
share of common stock - basic |
|
$ |
(0.72 |
) |
|
$ |
(0.07 |
) |
|
$ |
0.51 |
|
|
$ |
0.66 |
|
Weighted average
shares of common stock - basic |
|
|
278,674,506 |
|
|
|
168,474,882 |
|
|
|
268,899,932 |
|
|
|
163,856,352 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income (loss) per
share of common stock - diluted |
|
$ |
(0.72 |
) |
|
$ |
(0.07 |
) |
|
$ |
0.50 |
|
|
$ |
0.66 |
|
Weighted average
shares of common stock - diluted |
|
|
278,674,506 |
|
|
|
168,474,882 |
|
|
|
277,959,660 |
|
|
|
173,740,064 |
|
Supplemental
information: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
BTC production during the
period, in whole BTC |
|
|
2,058 |
|
|
|
2,926 |
|
|
|
4,869 |
|
|
|
5,121 |
|
Average BTC per day, in whole
BTC |
|
|
22.9 |
|
|
|
32.2 |
|
|
|
26.8 |
|
|
|
28.3 |
|
Total margin (total revenues
less total cost of revenues) |
|
$ |
(36,556 |
) |
|
$ |
(10,738 |
) |
|
$ |
(39,564 |
) |
|
$ |
(10,716 |
) |
Total margin excluding the
impact of depreciation and amortization (2): |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Mining (1) |
|
|
50,640 |
|
|
|
26,537 |
|
|
$ |
123,823 |
|
|
$ |
44,292 |
|
Hosting services (1) |
|
|
612 |
|
|
|
— |
|
|
$ |
2,416 |
|
|
$ |
— |
|
General and administrative
expenses excluding stock-based compensation |
|
|
(28,786 |
) |
|
|
(15,389 |
) |
|
$ |
(50,184 |
) |
|
$ |
(26,580 |
) |
Installed Hash Rate (Exahashes
per second) - at end of period (1) |
|
|
31.5 |
|
|
|
21.8 |
|
|
|
31.5 |
|
|
|
21.8 |
|
Energized Hash Rate (Exahashes
per second) - at end of period (1) |
|
|
31.5 |
|
|
|
17.7 |
|
|
|
31.5 |
|
|
|
17.7 |
|
Average Operational Hash Rate
(Exahashes per second) (1) |
|
|
24.0 |
|
|
|
12.1 |
|
|
|
21.2 |
|
|
|
12.1 |
|
Cost per Petahash per day
(1) |
|
$ |
41.0 |
|
|
$ |
50.4 |
|
|
$ |
42.8 |
|
|
$ |
51.7 |
|
Share of available miner
rewards |
|
|
3.7 |
% |
|
|
3.3 |
% |
|
|
3.2 |
% |
|
|
2.9 |
% |
Number of blocks won |
|
|
457 |
|
|
|
414 |
|
|
|
825 |
|
|
|
635 |
|
Transaction fees as a
percentage of total |
|
|
10.5 |
% |
|
|
8.2 |
% |
|
|
8.8 |
% |
|
|
6.2 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Reconciliation to
Adjusted EBITDA: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income
(loss) |
|
$ |
(199,659 |
) |
|
$ |
(8,962 |
) |
|
$ |
137,514 |
|
|
$ |
109,737 |
|
Exclude: Interest expense |
|
|
1,369 |
|
|
|
2,840 |
|
|
|
2,625 |
|
|
|
6,600 |
|
Exclude: Income tax expense (benefit) |
|
|
(31,657 |
) |
|
|
203 |
|
|
|
6,394 |
|
|
|
278 |
|
EBIT |
|
|
(229,947 |
) |
|
|
(5,919 |
) |
|
|
146,533 |
|
|
|
116,615 |
|
Exclude: Depreciation and amortization |
|
|
110,815 |
|
|
|
37,275 |
|
|
|
194,363 |
|
|
|
55,008 |
|
EBITDA |
|
|
(119,132 |
) |
|
|
31,356 |
|
|
|
340,896 |
|
|
|
171,623 |
|
Exclude: Stock compensation expense |
|
|
28,332 |
|
|
|
4,451 |
|
|
|
80,245 |
|
|
|
8,396 |
|
Exclude: Early termination expenses |
|
|
5,660 |
|
|
|
— |
|
|
|
27,757 |
|
|
|
— |
|
Exclude: Gain on investments |
|
|
— |
|
|
|
— |
|
|
|
(5,236 |
) |
|
|
— |
|
Exclude: Net loss from extinguishment of debt |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
333 |
|
Adjusted
EBITDA (2) |
|
$ |
(85,140 |
) |
|
$ |
35,807 |
|
|
$ |
443,662 |
|
|
$ |
180,352 |
|
(1) Mining and hosting services margin excluding
the impact of depreciation and amortization is calculated using
revenues less cost of revenues, excluding depreciation and
amortization, for mining and hosting services, respectively. The
Company defines Energized Hash Rate as the total hash rate that
could theoretically be generated if all mining rigs that have been
operational / energized are currently in operation and running at
100% of the manufacturers’ specifications (includes mining servers
that are offline for maintenance or similar reasons). The Company
uses this metric as an indicator of progress in bringing rigs
on-line. The Company defines Avg. Operational Hash Rate as the
average hash rate that was actually generated during the period
from all operational miners. The Company uses this metric as an
indicator of its operational progress. The Company defines
Installed Hash Rate as the sum of Energized Hash Rate and hash rate
that has been installed but is not yet operational (e.g. mining
rigs that have been installed, but are not yet energized and in
operation). The Company uses this metric as an indicator of
progress in deploying mining rigs at its production sites. Cost per
Petahash per day is calculated using mining cost of revenues,
excluding depreciation and amortization, divided by the Average
Operational Hash Rate, excluding the Company’s share of the hash
rate for the equity method investee. Hash rates are estimates based
on the manufacturers’ specifications. All figures are estimates and
rounded.
The Company believes that these metrics are
useful as an indicator of potential BTC production. However, these
metrics cannot be tied directly to any production level expected to
be actually achieved as (a) there may be delays in the energization
of Installed Hash Rate (b) the Company cannot predict when
installed and energized rigs may be offline for any reason,
including curtailment or machine failure and (c) the Company cannot
predict Global Hash Rate (and therefore the Company’s share of the
Global Hash Rate), which has significant impact on the Company’s
ability to generate BTC in any given period.
(2) Non-GAAP Financial Measures
In order to provide a more comprehensive understanding of the
information used by our management team in financial and
operational decision-making, we supplement our Condensed
Consolidated Financial Statements that have been prepared in
accordance with generally accepted accounting principles in the
United States (“GAAP”) with the non-GAAP financial measures of
adjusted EBITDA and total margin excluding depreciation and
amortization.
The Company defines adjusted EBITDA as (a) GAAP
net income (loss) plus (b) adjustments to add back the impacts of
(1) depreciation and amortization, (2) interest expense, (3) income
tax expense (benefit) and (4) adjustments for non-cash and
non-recurring items which currently include (i) stock compensation
expense, (ii) early termination expenses, (iii) gain on investments
and (iv) losses from extinguishment of debt. The Company defines
total margin excluding depreciation and amortization as (a) GAAP
total margin less (b) depreciation and amortization.
Management uses adjusted EBITDA and total margin
excluding depreciation and amortization, along with the
supplemental information provided herein, as a means of
understanding, managing, and evaluating business performance and to
help inform operating decision-making. The Company relies primarily
on its Condensed Consolidated Financial Statements to understand,
manage, and evaluate its financial performance and uses non-GAAP
financial measures only supplementally.
We believe that adjusted EBITDA and total margin
excluding depreciation and amortization are useful measures to us
and to our investors because they exclude certain financial,
capital structure, and non-cash items that we do not believe
directly reflect our core operations and may not be indicative of
our recurring operations, in part because they may vary widely
across time and within our industry independent of the performance
of our core operations. We believe that excluding these items
enables us to more effectively evaluate our performance
period-over-period and relative to our competitors. Adjusted EBITDA
and total margin excluding depreciation and amortization may not be
comparable to similarly titled measures provided by other companies
due to potential differences in methods of calculations.
Marathon Digital (NASDAQ:MARA)
過去 株価チャート
から 7 2024 まで 8 2024
Marathon Digital (NASDAQ:MARA)
過去 株価チャート
から 8 2023 まで 8 2024