A significant American Bitcoin mining company called Marathon Digital Holdings said it had to sell more than half of its Bitcoin production in the second quarter to cover its costs, which left it with a net loss of almost $200 million.
This information was in the company’s Q2 financial report, and it caused shares to drop a lot. On Thursday, August 1, they dropped more than 7%.Marathon mined 2,058 Bitcoins during the quarter, which is 30% less than in Q2 2023, according to the study.
Bitcoin Production Hit Hard
Even though quarterly sales went up almost 80% to $145.1 million, the company didn’t do as well as experts expected, who thought it would do about $158 million. This is the second quarter in a row that Marathon has missed its revenue goals. In Q1, it missed its revenue goals by 15% compared to what Zacks Investment Research predicted.
CEO Fred Thiel said that the drop in production was caused by a number of problems, such as unexpected machine breakdowns, maintenance on transmission lines, higher global hash rates, and the April Bitcoin halving event.
Thiel told investors that the problems with the transformers at the Ellendale site would be fixed after the quarter. He also stressed that the company’s goal is to reach 50 exahashes of powered hash rate by the end of 2024, with more growth expected in 2025.
Marathon said at the end of July that it would buy $100 million worth of Bitcoin as part of its “HODL strategy.” This brought the total amount of BTC it owned to over 20,000 BTC. As part of its new plan, the company also said it would keep all mined BTC and make strategic purchases on the open market from time to time.
