Marathon Digital has also disclosed the nature of its exposure to now-defunct crypto-focused Silvergate Bank.
lined up Bitcoin (BTC) mining firm, Marathon Digital Holdings Inc (NASDAQ: MARA) has released its performance report for the fourth quarter (Q4) of 2022 in which it revealed lower-than-expected revenue. According For the firm, its revenue came in at $28.4 million, down 58% from its year-ago record.
Marathon Digital operates in a very strained market as the global economy, the high cost of energy and the declining price of bitcoin have largely kept businesses on the sidelines over the past year. While expectations for the firm remain low, its reported revenue is even lower than the $38.4 million it previously reported. Estimate Some time ago.
According to the company, its full-year performance also reflected its struggles in the year-ago period. The Las Vegas, Nevada-headquartered firm said its full-year revenue for the 2022 fiscal year fell 26% to $117.8 million. This figure was from a renegotiated value of $159.2 million in 2021.
Amidst its operational woes that nearly drove it to an ongoing bankruptcy, Marathon Digital said it posted a loss of $686.7 million, a figure well past the $37.1 million loss it accrued in 2021.
Explaining its woes, the company said its performance was impacted by a “fourth quarter impairment charge related to the carrying value of mining rigs and advances to vendors” of $332.9 million and a “decline in the carrying value of our digital assets”. which totaled $317.6. million.
Despite news of its performance report that was lower than expected, Marathon Digital’s shares are rising to show a good correlation with bitcoin. Shares closed Thursday positive at 7.62% and rose more than 6% to $8.06 in pre-market trading.
Marathon Digital Revenue and the Silvergate Saga
Marathon Digital also disclosed the nature of its exposure to the now-defunct crypto-focused Silvergate Bank, According to the company, it has a loan agreement that it recently terminated following the bank’s recent failures.
“In February 2023, we terminated our credit facility with Silvergate Bank, resulting in the release of 3,132 bitcoins previously held as collateral,” CEO Fred Thiel said in a statement. “We are also pursuing alternative banking relationships in light of recent developments with Signature Bank.”
In the midst of all its financial and performance woes, Marathon Digital has still registered impressive bitcoin production metrics. According to the company, its bitcoin production was up 42% in the fourth quarter and 30% for the full year. In terms of numbers, a total of 1,562 BTC were mined in the fourth quarter and 4,144 BTC for the full year.
Where the company seems to be starting the year on a better note for the company sold mined all the BTC in February to offset some of its outstanding obligations.
Benjamin Godfrey is a blockchain enthusiast and journalist who loves to write about real life applications of blockchain technology and innovations to drive general acceptance and worldwide integration of the emerging technology. His desire to educate people about cryptocurrencies drives his contributions to well-known blockchain-based media and sites. Benjamin Godfrey is a lover of sports and agriculture.
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