Marathon Digital (MARA) stock is down in after-hours trading following a Q2-2024 earnings report that missed expectations. The company reported a larger-than-expected loss per share of $0.72, falling short of analysts’ EPS estimates of -$0.10. Revenue was $145.1 million, below the anticipated $157.86 million, despite a 78% increase from the same quarter last year due to higher Bitcoin prices.
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The quarter posed challenges, including a 30% drop in Bitcoin production to 2,058 BTC and a $148 million fair market value loss on digital assets, contributing to a net loss of $199.7 million. Adjusted EBITDA also decreased, showing a loss of $85.1 million from a positive $35.8 million last year. Marathon attributed these declines to fair value adjustments, reduced Bitcoin production from equipment failures, and increased global hash rates.
Despite setbacks, Marathon made strategic moves to position itself for growth. It expanded its hash rate to 31.5 EH/s, a 78% increase from Q2 2023, aiming for 50 EH/s by year-end. Marathon restructured into three business units—Utility Scale Mining, Energy Harvesting, and Technology—to align with growth opportunities. Strategic initiatives included acquiring a data center in Texas and partnering with Kenya to develop energy assets, along with launching Kaspa mining operations.
Another positive note is that MARA’s unrestricted cash, cash equivalents, and Bitcoin combined rose to $1.4 billion as of the end of Q2. Finally, Marathon recently adopted a “HODL” treasury policy, now holding more than 20,000 BTC, reflecting the firm’s confidence in Bitcoin’s long-term value.
Is MARA Stock a Buy, According to Analysts?
On TipRanks, NET stock comes in as a Moderate Buy based on one Buy, four Holds, and one Sell rating assigned in the past three months. The average Marathon Digital stock price target of $21.20 implies 16.9% upside potential.
