Bitcoin miner Marathon Digital saw its shares drop by 8% in post-market trading on Thursday after the company reported second-quarter revenue that fell short of Wall Street’s expectations. The revenue of $145.1 million missed the estimated $157.9 million, citing operational challenges and the recent halving event as reasons for the decline.
Marathon CEO, Fred Thiel, explained that unexpected equipment failures, transmission line maintenance, increased global hash rate, and the halving event all impacted the BTC production during the second quarter. Despite these challenges, the company managed to reach an all-time high mining power of 31.5 exahash per second in the same quarter.
The company reported a swing in adjusted EBITDA from a gain of $35.8 million to a loss of $85.1 million, mainly due to unfavorable fair value adjustments of digital assets and lower BTC mined during the quarter. However, Marathon remains optimistic about reaching a hashrate of 50 EH/s by the end of the year and further growth in the following year.
To cover its operating costs, Marathon sold 51% of the bitcoin mined in the second quarter. However, it recently purchased $100 million worth of bitcoin in the open market and shifted its strategy to hold all BTC in its balance sheet. Currently, the company holds more than 20,000 BTC in its balance sheet.
CEO Thiel mentioned that the company reorganized its internal structure to better align with growth opportunities, sharpen strategic focus, increase accountability, and enhance speed and agility as it scales up. Despite the revenue miss and operational challenges, Marathon is focused on expanding its mining capabilities and increasing its bitcoin holdings for the future.