Marathon Digital, a company that mines Bitcoin, saw its stock price drop after failing to meet profit expectations set by Wall Street. The stock fell by 8% following the announcement of its second-quarter revenues, which came in at $145.1 million, lower than the estimated $157.9 million.
The company faced several challenges during the quarter, including operational issues that affected its mining capacity and a decrease in mining rewards due to the halving event in April. Marathon’s CEO, Fred Thiel, explained that equipment failures and transmission line maintenance at the Ellendale site, increased global hash rate, and the halving event all impacted the company’s Bitcoin production.
Despite these challenges, Marathon was able to complete the transmission line maintenance at the end of the quarter, resulting in an all-time high hash rate of 31.5 exahash. The company now aims to reach 50 exahash by the end of the year to increase its Bitcoin mining and profits in the post-halving era.
Looking ahead, Thiel emphasized Marathon’s goal of becoming a globally diversified company that uses digital asset compute to create a more sustainable future. The company restructured its internal organization during the quarter to align with growth opportunities, enhance strategic focus, and improve accountability and agility as it scales up.
Marathon has reorganized into three specialized business teams: Utility Scale Mining, Energy Harvesting, and Technology. Additionally, the company recently adopted a HODL strategy, purchasing $100 million worth of Bitcoin and committing to holding the rewards earned from mining on the network.
During the second quarter, Marathon sold 51% of the Bitcoin it mined to cover operational expenses. The company’s focus on increasing its hash rate, diversifying its business, and holding onto mined Bitcoin signals its commitment to long-term growth and sustainability in the digital asset industry.