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 <p class="is-style-lead">Bitcoin <a rel="noopener noreferrer nofollow" title="miner" href="https://thebittimes.com/tag/miner.html">miner</a> Marathon Digital Holdings has reported a substantial increase in <a rel="noopener noreferrer nofollow" title="revenue" href="https://thebittimes.com/tag/revenue.html">revenue</a>, marking a 670% rise year-on-year in the third quarter of 2023.</p>
 <p>This remarkable growth is attributed to a significant uptick in Bitcoin (BTC) production, which increased from 6.7 mined BTC per day in Q3 2022 to an impressive 37.9 BTC per day in Q3 2023.</p>
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    <p lang="en" dir="ltr">Marathon’s Q3 Earnings Release is here:<br>– Revenue of $97.8M, due to 467% increase in #Bitcoin production and higher BTC prices.<br>– Adjusted EBITDA improves to $43.7M.<br>– 8% increase in hash rate; expanding with hydro-powered ventures in Paraguay.<br>– Long-term debt reduced by 56%,…</p>— Marathon Digital Holdings (NASDAQ: MARA) (@MarathonDH) November 8, 2023
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 <p>The company’s financial health has also seen a positive turn, with a reported net income of $64.1 million for the quarter, as per the latest results filed on Nov. 8. This profitability is a notable swing from previous figures, highlighting the company’s robust performance in the market.</p>
 <p>A key factor in Marathon‘s enhanced output has been a 467% <a rel="noopener noreferrer nofollow" title="surge" href="https://thebittimes.com/tag/surge.html">surge</a> in Bitcoin production, coupled with a 403% increase in hashrate—a measure of the power of the <a rel="noopener noreferrer nofollow" title="miner" href="https://thebittimes.com/tag/miner.html">miner</a>s in the network—over the same period last year.</p>
 <p>The hashrate boost is partly due to Marathon’s strategic expansion, including the inauguration of a 27-megawatt hydro-powered mining facility in Paraguay, announced concurrently with the financial results.</p>
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 <p>Fred Thiel, Marathon’s CEO and chairman, expressed that the company’s “significant progress” has fortified its financial position, particularly in anticipation of the Bitcoin halving event slated for April 2024.</p>
 <p>This BTC halving event is expected to impact <a rel="noopener noreferrer nofollow" title="miner" href="https://thebittimes.com/tag/miner.html">miner</a>s’ rewards and has been a topic of discussion within the industry regarding its potential effects on profitability.</p>
 <p>A note exchange finalized in September resulted in Marathon reducing its long-term debt to 56%, securing upwards of $100 million in cash savings for its shareholders, as highlighted by Thiel.</p>
 <p>“For the first time in two years, our combined cash and bitcoin holdings exceeded our debt at the quarter’s end.”</p>
 <p>Marathon Digital Holdings will continue to focus on enhancing its mining capacity in the near to medium term.</p>
 <p>The company’s current operational hashrate is at 23.1 exahashes per second. Plans are in place to elevate this figure to 26 EH/s, with an ambitious target to achieve a 30% increase by 2024.</p>
 <h2 class="wp-block-heading" id="valuation-concerns-amidst-financial-success">Valuation concerns amidst financial success</h2>
 <p>Despite these positive developments, Marathon Digital has been flagged by MinerMetrics as one of the most overvalued entities in the crypto mining sector.</p>
 <p>This assessment is based on the enterprise value-to-sales (EV/S) ratio, with Marathon’s standing at 5.6. The high valuation is influenced by the company’s visibility and favor among institutional investors, which has granted it better access to capital and, consequently, a higher market valuation.</p>
 <p>Analyst Jaran Mellerud from MinerMetrics suggests that investor focus might shift toward other crypto-mining entities with lower EV/S ratios, which could present more attractive investment opportunities.</p>
 <p>Among the mining companies, Marathon still stands to be the largest holder of Bitcoin, with a reserve of 13,396 BTC valued at approximately $492.3 million.</p>
 <p>The BTC <a rel="noopener noreferrer nofollow" title="miner" href="https://thebittimes.com/tag/miner.html">miner</a>’s stock (MARA) experienced a 6.9% decline to $8.55 on Nov. 8. However, it saw a rebound of 9.4% in after-hours trading following the earnings announcement, as per data from Google Finance.</p>
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<p>Source: <a rel="noopener noreferrer nofollow" target="_blank" href="https://thebittimes.com/bitcoin-miner-marathon-digital-posts-670-surge-in-q3-revenue-tbt69695.html">https://thebittimes.com/bitcoin-miner-marathon-digital-posts-670-surge-in-q3-revenue-tbt69695.html</a></p>

Bitcoin miner Marathon Digital posts 670% surge in Q3 revenue

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