Marathon Digital, a leading U.S.-based Bitcoin (BTC) mining company, has reported a huge increase in 2023 revenue, leading the company to significant profitability. Marathon Digital released its fourth quarter and year-end earnings report on Wednesday, revealing a staggering 229 percent increase in revenue of $387.5 million for 2023.
Marathon CEO Fred Thiel said: “2023 was a record year for Marathon, during which we achieved our main goals, such as strengthening our fleet of previously acquired mining rigs and optimizing our performance.”
Revenue in the fourth quarter rose 452% to $156.8 million, exceeding analysts’ expectations and showing a significant increase from $28.4 million in the fourth quarter of 2022. Analysts had estimated quarterly revenue at $148.8 million.
According to the company’s report, the revenue increase was the result of a 172% year-on-year increase in Bitcoin production , coupled with a nearly doubling of the average BTC price during the period.
Marathon Digital sold 56% of the Bitcoin it produced this quarter to cover operating expenses. The company reported earnings before interest, taxes, depreciation and amortization (EBITDA), compared to a loss of $374 million in the fourth quarter of 2022.
Bitcoin production at Marathon has increased significantly. It reached a peak of 12,852 BTC in 2023, an increase of 210%. What’s more, the company’s energy hashing rate increased by 253%, reaching 24.7 EH/s in 2023, up from 7.0 EH/s the previous year.
Marathon’s CFO, Salman Khan, said: “We entered 2024 with a strong balance sheet that ensures we are well positioned for the coming halving and beyond.”
In addition to Marathon, other mining companies also reported record revenues last year. Most notably, Riot Platforms ‘ total revenues peaked at $281 million. The company reported that it produced 6626 Bitcoins during the year, up 19 percent from the 5554 it produced during the same period in 2022.
Riot detailed that revenues from Bitcoin mining totaled $189.0 million, Data Center hosting $27.3 million, engineering $64.3 million and other $0.1 million.
Revenue from Bitcoin mining exceeded expenses, totaling $92.4 million, or 48.9% of revenue. This marked an increase of $9.9 million compared to the same period in 2022. Meanwhile, while the mining industry prepares for a huge change as a result of Bitcoin’s halving in 2024, leading players are preparing for the challenges ahead.
