Bitcoin miner Marathon Digital posted a loss of $687 million for the year 2022.
The firm’s fourth-quarter revenue fell by 58% to just $28.4 million.
The Bitcoin miner’s Q4 revenue was projected to be $38.4 million.
A Q4 impairment charge and a decline in the value of digital assets were identified as major factors for the massive loss.
Crypto mining giant Marathon Digital Holdings lost over half a billion dollars in 2022. The Bitcoin mining firm recently released its earnings report for the fourth quarter of 2022 as well as the fiscal year. The report revealed a loss of $687 million for the year ended 31 December 2022. The figure represented a whopping 1756% increase in Marathon Digital’s loss compared to 2021, during which the bitcoin miner posted a loss of $37 million.
Marathon Digital’s Q4 earnings fell by 58%
According to the earnings report released by Marathon Digital, the revenue for the fourth quarter of 2022 fell by 58% to $28.4 million. The Bitcoin mining firm’s Q4 revenue projections were close to $38 million, per data gathered by FactSet. As for the yearly figures, a revenue of $117.8 million was reported, marking a decline of 26%.
The company attributed the massive loss to an impairment charge related to the carrying value of mining rigs and advances to vendors of $332.9 million, which occurred in the fourth quarter. An additional $317.6 million was attributed to declines in the carrying value of the Bitcoin miner’s digital assets.
Despite the operational progress, our financial performance was negatively impacted by several factors in 2022, including accelerated costs related to our exit from Hardin, the Compute North bankruptcy, and most significantly, a 64% decline in the price of Bitcoin that reduced our margin and resulted in impairment charges for our bitcoin holdings.”
Fred Thiel, Marathon Digital’s chairman and CEO.
Interestingly, not all Q4 figures were as discouraging as the company’s revenue. Marathon Digital’s Bitcoin production in the last quarter of 2022 went up by 42% to a record 1562 BTC. A total of 4144 Bitcoins were mined throughout 2022. The earnings report had a subtle impact on the firm’s share price. The stock is currently trading at $7.89.