Business
Marathon Digital Holdings Reports Third Quarter 2022 Results
LAS VEGAS, Nov. 08, 2022 (GLOBE NEWSWIRE) -- Marathon Digital Holdings, Inc. (NASDAQ:MARA) ("Marathon" or "Company"), a leader in supporting and securing the
About this update from Mara Holdings, Inc.
[{"type":"text","content":"LAS VEGAS, Nov. 08, 2022 (GLOBE NEWSWIRE) -- Marathon Digital Holdings, Inc. (NASDAQ:MARA) (\"Marathon\" or \"Company\"), a leader in supporting and securing the Bitcoin ecosystem, reported its financial and operational results for the quarter ended September 30, 2022. Third Quarter 2022 Financial ResultsThe Company recorded a net loss of $(75.4) million, or $(0.65) per share, during the quarter compared with a net loss of $(22.2) million, or $(0.22) per share, in the prior-year period. Unfavorable earnings variances during the quarter compared to the prior year quarter included: A total margin decline of $(68.8) million resulting from: Lower revenues from decreased production and bitcoin prices, totaling $(39.0) millionIncreases in cost of revenues due to accelerated cost recognition from Hardin exit, totaling $(20.8) millionOther cost of revenue increases, net, totaling $(9.0) million A decrease in the carrying value of digital currencies of $(5.9) million compared to an increase of $35.4 million in the prior year period; a net change of $(41.3) millionAn impairment charge related to the previously announced Compute North bankruptcy filing of $(39.0) millionThe previously announced legal settlement reserve $(25.0) millionHigher interest expense of $(3.8) million These unfavorable variances were partially offset by: A decline in general and administrative expenses primarily associated with lower stock compensation costs: $86.9 millionGain on sales of assets related to the previously announced development of King Mountain (McCamey, TX) and the sale of assets upon exiting Hardin, MT: $31.9 millionAn income tax benefit of $5.7 million The Company produced 616 bitcoin in Q3 2022, a 51% decrease from 1,252 bitcoin in the third quarter of 2021 and a 13% sequential decrease from 707 bitcoin in the prior quarter. The lower production resulted from the previously announced exit from the Company’s facility in Hardin, MT and delays in the initial energization of the King Mountain facility in McCamey, TX. As the Company began scaling operations at new facilities, bitcoin production improved throughout the quarter. Year-to-date through September 30, 2022, the Company produced 2,582 bitcoin, a 23% increase over the same time period in the prior year. Year-to-date through October 31, 2022, the Company produced 3,197 bitcoin, a 27% increase ov...