Marathon Digital released its second-quarter earnings report for 2024, revealing revenue of $145.1 million, which fell short of the consensus estimate of $157.9 million. This shortfall led to an 8% decline in the company’s share price.
The earnings per share also missed expectations, falling short by $0.58. Despite this, the company saw a significant year-on-year revenue increase of 78% from the $81.7 million recorded in Q2 2023.
The report highlighted that Marathon Digital mined 2,058 BTC tokens in Q2 2024, a 30% decrease from the 2,926 BTC mined in the same period last year.
Furthermore, this number was 27% lower than the 2,811 BTC mined in Q1 2024. The average daily mining output was 22.9 BTC, which is 9.3 BTC less than the daily average in Q2 2023. However, the average price of the BTC mined in Q2 2024 increased by 136% compared to Q2 2023.
Marathon Digital Misses Q2 2024 Estimates, Shares Fall by 8%
Following the earnings report, Marathon Digital’s shares (MARA) fell by 7.78%, closing at $18.14 on August 1. This marks the second consecutive quarter where Marathon fell short of consensus estimates, having also missed Q1 predictions by 14.80%. In Q1 2024, the company’s revenue was $165.2 million, a significant 223% year-over-year increase, but still below expectations.
Meanwhile, Marathon’s competitor, Riot Platform, posted its Q2 2024 earnings, showing a closer alignment with analysts’ estimates. Riot reported revenue of $70 million, an 8.8% year-on-year increase, and just 0.63% below Zacks’ estimates. However, Riot experienced a 52% decline in the number of BTC mined, totaling 844 tokens in Q2 2024, which the company attributed to the Bitcoin Halving event.
Riot’s stock (RIOT) also saw a decline, trading at $8.90 as of August 2, down by 4.54% from the previous day. Additionally, Marathon Digital faced a $138 million fine on July 23 for breaching a non-disclosure agreement, further impacting its financial performance and investor sentiment.
