Marathon Digital (MARA) shares sank in after-hours trading after the Bitcoin miner reported third-quarter results. Earnings per share came in at -$0.42, which missed analysts’ consensus estimate of -$0.34 per share. However, revenue for the quarter soared by 34.6% to $131.7 million. Nevertheless, this also missed analysts’ expectations of $140.26 million, which likely led to the price drop.
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The revenue jump was driven by higher Bitcoin production and an increase in BTC prices. Indeed, during the quarter, MARA increased its BTC production by 1% to 2,070 BTC. Additionally, the company improved its hash rate capacity to 36.9 EH/s (Exahash per second) from 19.1 EH/s in Q3 2023 and plans to increase its hash rate capacity to 50 EH/s by the end of the year.
Furthermore, MARA finished the quarter with 26,747 Bitcoins on its balance sheet. In that three-month period, the company purchased an additional 6,210 BTC. Of those, 4,144 were bought with proceeds from a $300M convertible senior notes offering at an average price of $59,500 per BTC. It is also worth noting that the company now has a hoard of 27,562 Bitcoins, according to its most recent production update for October.
Is MARA a Good Stock to Buy?
Turning to Wall Street, analysts have a Moderate Buy consensus rating on MARA stock based on three Buys, one Hold, and one Sell assigned in the past three months, as indicated by the graphic below. After a 110% rally in its share price over the past year, the average MARA price target of $21 per share implies 9.1% upside potential.
