Marathon Digital nasdaq Mara Stock Tumbles As Investors Digest Mixed Q4 Earnings Report

Marathon Digital (NASDAQ: MARA) Stock Tumbles as Investors Digest Mixed Q4 Earnings Report

Marathon Digital Holdings (NASDAQ: MARA) stock plunged over 16% on Thursday after the company reported mixed Q4 financial results.

Marathon Digital (MARA) has released its fourth-quarter financial report, revealing a 452% year-over-year surge in revenue, totaling $156.77 million. This remarkable growth is attributed to robust Bitcoin mining activities. The reported revenue surpassed analysts’ expectations, which had forecasted it to reach $144.08 million.

The company has turned its fortunes around, shifting from a loss of $3.13 per share in the previous year to a profit of 66 cents per share in the fourth quarter. However, on an adjusted basis, the company still reported a loss of 2 cents per share, falling short of the 3-cent per share profit expected by analysts.

Q4 Bitcoin Production

In addition to the financial metrics, Marathon Digital saw significant growth in its operational aspects. Fourth-quarter Bitcoin production surged 172% to reach 4,242 units. The average daily production of Bitcoin also saw a substantial increase.

The energized and installed hash rates witnessed remarkable jumps of 319% and 260%, respectively. Hash rate, a crucial measure of a network’s security, plays a pivotal role in determining the mining difficulty of a blockchain network.

Fred Thiel, CEO of Marathon Digital, expressed confidence in the company’s trajectory. He stated,

“Whether it be financially, operationally, or technologically, we believe we are setting the pace for this industry. Given our momentum, our strong balance sheet, and the differentiators we are building with our technology stack, we are optimistic that the most exciting times for our organization are still to come.”

Marathon Digital shares saw a slight pullback, counter to Bitcoin’s ongoing rally. Bitcoin reached a new intraday high of $63,432.97 on Thursday before retracing slightly. Analysts attribute the weakness in Marathon Digital shares to the earnings miss, particularly after the stock’s impressive 29% pre-earnings rally earlier in the week.

Marathon Digital (NASDAQ: MARA) Stock Performance

MARA stock plummeted 16.60% to close at $25.88 on Thursday. The traders had exchanged hands with 131,998,789 (131.99 million) shares compared to the average daily trading volume of 84.06 million.