Source

United

Bitcoin

when

Marathon Digital, one of the largest Bitcoin miners based in the United States, received a major blow when its second-quarter revenues failed to meet the market’s forecast, and as a result, its share price dropped by 7.78% to $18.14 by the end of a trading period. 
The company has <a href="https://ir.mara.com/investors/news-events/press-releases/detail/1364/mara-reports-second-quarter-2024-results" target="_blank" rel="noreferrer noopener nofollow">recorded revenues</a> of $145.1 million for Q2 2024, which is 9% below the $157.9 million that analysts had expected. Despite experiencing a healthy 78% year-on-year growth from $81.8 million in Q2 2023, the numbers did not meet the expectations. 
<div class="wp-block-image"> 
 <figure class="aligncenter size-full">
 <img decoding="async" width="674" height="447" src="https://www.cryptotimes.io/wp-content/uploads/2024/08/Marathon-Digitals-Stock-Falls-7.78-After-Q2-Revenue-Miss.png" alt="Marathon Digital’s Stock Falls 7.78% After Q2 Revenue Miss" class="wp-image-193764" srcset="https://www.cryptotimes.io/wp-content/uploads/2024/08/Marathon-Digitals-Stock-Falls-7.78-After-Q2-Revenue-Miss.png 674w, https://www.cryptotimes.io/wp-content/uploads/2024/08/Marathon-Digitals-Stock-Falls-7.78-After-Q2-Revenue-Miss-330x220.png 330w, https://www.cryptotimes.io/wp-content/uploads/2024/08/Marathon-Digitals-Stock-Falls-7.78-After-Q2-Revenue-Miss-420x280.png 420w" sizes="(max-width: 674px) 100vw, 674px">
 <figcaption class="wp-element-caption">
 Source: <a href="https://www.google.com/finance/quote/MARA:NASDAQ?sa=X&amp;ved=2ahUKEwiS-Z7g_NSHAxX77zgGHdUcM6QQ3ecFegQIQhAX" target="_blank" rel="noreferrer noopener nofollow">Google Finance</a>
 </figcaption>
 </figure>
</div> 
Marathon blamed the lower revenue on increased operating expenses after the Bitcoin halving in April. In response, the company sold 51% of its Bitcoin holdings to cover expenses, noting a marked increase in the average price of mined Bitcoin as compared to the prior year. However, the firm subsequently&nbsp;bought $100 million worth of BTC and now holds more than 20,000 Bitcoins. 
In the quarter, Marathon produced an average of 22.9 Bitcoins per day, 9.3 fewer than in Q2 2023. This marks the second consecutive quarter the company has missed Wall Street estimates, following Q1. 
On the other hand, the rival miner Riot Platforms declared Q2 revenues of $70 million, an 8.8% year-on-year decline, which was in line with market expectations. Riot’s stock (RIOT) also fell by 8.54% at the close of the trading session ending at $9.32. 
The recent financial difficulties of Marathon show that the Bitcoin mining sector is highly sensitive to changes in the Bitcoin price and the cost of production. The investors and the analysts would be keenly observing how Marathon is going to manage these issues in the coming quarters. 
This was evident when Marathon Digital could not meet its revenue projections despite experiencing growth in the highly unpredictable Bitcoin mining industry. The operational costs are likely to remain volatile and investors may have to prepare themselves for further fluctuations. 
<blockquote class="wp-block-quote is-layout-flow wp-block-quote-is-layout-flow"> 
 Also Read: <a href="https://www.cryptotimes.io/2024/06/27/marathon-digital-mines-16m-in-kaspa-maintains-99-focus-on-bitcoin/" target="_blank" rel="noreferrer noopener">Marathon Digital Mines $16M in Kaspa, Maintains 99% Focus on Bitcoin</a> 
</blockquote>

Marathon Digital Q2 Revenue Reports Quite a Loss, Shares Drop 8%

The Crypto Times

Other articles published on Aug 2, 2024

Crypto Mining Goes Nuclear with New Campus on the Market

Kujira Price Prediction: KUJI Plunges 44% As Foundation’s Leveraged Bets Unravel, And Experts Say...

XRP Faces Deeper Decline, Says Popular Crypto Analyst

Trump Loves Bitcoin (TRUMPBTC) Memecoin Will Explode 15,000% Before Exchange Listings, While Shib...

Tron Network Sees 52% Increase in Active Addresses Since January

Can XRP continue its uptrend? Watch out for THIS key level

Join our free newsletter for daily crypto updates!