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MARA stock drops 9% after Q3 revenue misses estimates

MARA stock drops 9% after Q3 revenue misses estimates

GrafaGrafa2024/11/13 08:00
By:Mahathir Bayena

MARA Holdings Inc, formerly known as Marathon Digital, saw a 9.1% decline in after-hours trading following its third-quarter earnings report, which fell short of revenue expectations.

On November 12, MARA reported a net loss of $124.8 million for Q3, translating to a $0.34 per share loss.

While this exceeded Wall Street forecasts, revenue of $131.6 million came below the anticipated $148.1 million.

The report highlighted a $40 million increase in operational expenses as a factor contributing to the company’s quarterly loss.

Despite the revenue shortfall, MARA's results were supported by its growth in Bitcoin mining.

The company reported mining 147 additional Bitcoin (CRYPTO:BTC) blocks during the quarter, with its energised hashrate rising 17.1% to reach nearly 37 exahashes per second (EH/s).

This operational boost aided in partially narrowing its financial deficit.

MARA’s stock dropped to $22.94 after market close, having finished the regular trading day up 0.88% at $25.23.

This decline follows a recent 30% share price increase on November 11, driven by Bitcoin’s rise toward the $90,000 mark.

MARA's stock has increased by 10% this year.

In Q3, MARA raised its Bitcoin holdings by 45%, bringing its total to 26,747 BTC, valued at $2.36 billion.

The company invested $100 million from its cash reserves to expand its Bitcoin assets, aligning with its new policy to retain all mined BTC.

"We will also capitalise on opportunities as they arise to purchase BTC, particularly during market downturns," MARA stated.

On November 11, MARA announced it had acquired an additional 372 megawatts (MW) of capacity at its Ohio facility, with 152 MW currently operational.

The company noted that revenue from such infrastructure investments typically takes 12 to 18 months to materialise.

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Disclaimer: The content of this article solely reflects the author's opinion and does not represent the platform in any capacity. This article is not intended to serve as a reference for making investment decisions.

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