Marathon Digital, one of the largest Bitcoin miners, has announced a net loss of $21.3 million for the second quarter of the year.
Bitcoin Mining Company Marathon Digital Made $81.8 Million In Q2 Revenue
In a new press release, Marathon Digital has revealed the results of the company’s performance during the second quarter of 2023 (lasting between April 1st and June 30th).
According to the report, the public miner has made a revenue of $81.8 million in this period, which is a notable rise from the $24.9 million revenue that the company made in the same quarter last year.
This is despite the fact that the average BTC price, and hence the value of the rewards that the miner would be earning, was 14% lower in Q2 2023 as compared to Q2 2022.
The reason the mining company has been able to post higher revenues nonetheless is because it is now producing about 314% more Bitcoin, thanks to expanded facilities.
Marathon Digital also sold 63% of all BTC that it mined in this quarter in order to pay off its operating costs and the miner made proceeds of about $23.4 million on this sale.
The revenues for this quarter were also significantly better than the previous quarter (Q1 2023), as the public mining company had recorded revenues of about $51.1 million back then.
“After a strong start to the year, we accelerated our progress in the second quarter by significantly growing our hash rate and improving our efficiency,” said the Marathon chairman and CEO, Fred Thiel.
“In Q2, we grew our energized hash rate 54% from 11.5 to 17.7 exahashes. By growing our hash rate faster than the rest of the network and improving our uptime, we also increased our Bitcoin production. We produced a record 2,926 bitcoin during the second quarter, representing approximately 3.3% of the Bitcoin network rewards available during the period,” Thiel added.
Despite the revenues registering an improvement this quarter, however, the report notes that Marathon Digital has still made a net loss of $21.3 million, or $0.13 per share.
In terms of how the company has progressed since Q2 ended, the CEO reveals that the miner added more mining rig installations during the past month (July), as well earlier in this month (August). With these expansions, Marathon Digital has reached its target of 23 exahash of hash rate.
2023 has been a fine time for the Bitcoin miners, as the price of the cryptocurrency has generally gone up during the year so far. The Ordinals craze earlier in the year also meant that the transaction fees on the network blew up, which also helped bolster the revenues of these chain validators.
Because of these developments, the miners have naturally been incentivized to keep expanding their facilities this year, which is why the total Bitcoin hash rate has set a new all-time high recently.
The trend in the 7-day mining hash rate during the past year | Source: Blockchain.com
BTC Price
At the time of writing, Bitcoin is trading around $29,700, up 1% in the last week.
BTC has made some recovery in the last 24 hours | Source: BTCUSD on TradingView