Bitcoin miner Marathon Digital shares fall 8% as Q2 profits fall

Marathon Digital has released its second-quarter 2024 results, which fell short of consensus estimates. The company collected revenue of $145.1 million contrary to analysts’ estimates expectations at USD 157.9 million.

Then, the Bitcoin miner’s shares saw a rise 8% drop after Q2 revenue report.

Marathon shares fall after Q2 2024 report

On August 1, bitcoin mining company Marathon Digital published Q2 2024 earnings report. As per the report, Marathon Digital recorded a revenue of $145.1 million for the quarter.

However, according to Yahoo finance, Its Q2 earnings were nearly 9% below analysts’ consensus estimate of $157.9 million. The company also missed its expected earnings per share by -$0.58 for Q2 2024.

Faced with a gap in reporting, Marathon noted Year-on-year profit growth of 78% from $81.7 million in Q2 2023

The report also indicated that Marathon mined 2,058 BTC tokens in Q2. This figure represents a 30% decrease compared to the 2,926 BTC mined during the same period last year.

Additionally, the number of BTC mined in Q2 2024 is 27% lower than the 2,811 mined by the company in Q1 2024.

On average, the mining company mined 22.9 BTC tokens per day second quarter 2024. This figure reflects the fact that Marathon Digital produced 9.3 BTC less than its daily mining output in Q2 2023. However, the average price of BTC mined by the company in Q2 2024 increased by 136% compared to Q2 2023.

Marathon (MARA) stock fell sharply after its Q2 2024 earnings report. According to data from Google Finance, MARA saw Down 7.78% on August 1 to close at $18.14.

The Q2 20224 report marks the second consecutive quarter that Marathon has fallen below consensus estimates. The company also missed its Q1 estimate of $193.9 million from Zacks by 14.80%.

Meanwhile, in Q1 2024, the company’s revenues hit $165.2 million, an increase of 223% year over year.

Riot Platform’s Record Q2 Revenue Closer to Analyst Estimates

Marathon’s competitor, Riot Platform, released its second-quarter 2024 report, reflecting a closer match to analyst estimates. According to its data, Riot reported revenue of $70 million for the quarter, up 8.8% year over year. This report fell just 0.63% short of the Zacks Consensus Estimate for the company’s earnings.

At the same time, Riot mined a total of 844 BTC tokens in Q2 2024. This number represents a 52% drop compared to the 1,775 BTC tokens mined in the same quarter of 2023. The company cited the Bitcoin Halving event as one reason for the drastic drop.

As of August 2, Riot’s stock, RIOT, was trading at $8.90, down 4.54% over the past day. Meanwhile, on July 23, Marathon was fined $138 million for breaking a confidentiality agreement.

Reservation: The opinions expressed in this article do not constitute financial advice. We encourage readers to conduct their own research and determine their own risk tolerance before making any financial decisions. Cryptocurrency is a highly volatile, high-risk asset class.

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