Bitcoin miner Marathon sees Q4 revenue decline 58% to $28.4 million

Marathon Digital Holdings said Thursday that revenue for the fourth quarter of the year declined 58% from the same period a year earlier to $28.4 million.

The bitcoin miner had been expected to report revenue of around $38.4 million for the quarter. The company last month cancelled an earnings call and postponed the release of the results to correct accounting errors that related to the impairment of digital assets.

In the newly released report, full year revenue for 2022 declined 26% to $117.8 million from a restated $159.2 million in 2021. The company recorded a net loss of $686.7 million for the year compared to a loss of $37.1 million in 2021.

The results were affected by a “fourth quarter impairment charge related to the carrying value of mining rigs and advances to vendors” of $332.9 million and “declines in the carrying value of our digital assets” that totaled $317.6 million.

Bitcoin production was up 42% in the fourth quarter to a record 1,562. On an annual basis, production increased 30% to 4,144.

“In February 2023, we terminated our credit facilities with Silvergate Bank, which resulted in the release of 3,132 bitcoin that were previously held as collateral,” CEO Fred Thiel said in a statement. “We are also pursuing alternative banking relationships in light of the recent developments with Signature Bank.”

Marathon shares declined 0.8% in post-market trading, according to TradingView. They had risen 7.6% in normal trading hours earlier in the day.

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