Marathon Digital Misses Revenue Expectations Due to Operational Challenges, Reaffirms Expansion Plan

Despite reporting first-quarter earnings per share exceeding analysts’ projections, Marathon Digital (MARA), one of the largest bitcoin miners, missed consensus revenue expectations due to operational difficulties during the quarter. The company extracted only 2,811 bitcoin during the initial three months of the year, representing a 34% decrease compared to the prior quarter. The company attributed the negative impact on Bitcoin production and consequent revenue to unanticipated equipment failures, transmission line maintenance, and unusually harsh weather conditions at Garden City and other locations throughout the quarter. In a statement issued on Thursday, Marathon affirmed its 2024 strategy of expanding capacity to 50 exahash per second (EH/s) and anticipates further expansion in 2025. Marathon’s stock prices decreased by approximately 1.5% in after-hours trading following the announcement, while Riot Platforms (RIOT) shares fell by 40% this year. This news was edited by Stephen Alpher.