Marathon Digital Narrows Q1 2023 Net Loss, But Adds Subpoena From SEC
Marathon Digital Holdings’ (Nasdaq: MARA) loss and revenue for the first quarter improved significantly over the previous quarter, thanks to bitcoin’s gain and lower mining costs during the three-month period.
The company maintained its target of reaching 23 exahash per second by the middle of 2023, “with more hash rate coming online in the months ahead,” said CEO Fred Thiel.
Q1 saw a net loss per share of $0.05, beating the average analyst estimate of a loss of $0.09 per share, and improving from the $3.14 loss per share in the previous quarter and $0.12 loss per share a year ago.
The company has outperformed consensus earnings per share projections three times in the last four quarters.
Total revenue of $51.1 million–which is above the $48.8 million consensus–increased from $28.4 million in Q4 2022 but decreased from $51.7 million the previous year. The cost of revenues meanwhile increased to $51.1 million from $43.6 million in Q4 2022 and $26.4 million in Q1 2022, largely a result of rising depreciation.
Another SEC subpoena
The earnings release comes along the development that Marathon Digital received another subpoena from the US Securities and Exchange Commission related to an investigation of a Montana data center that may involve potential violations of securities laws.
“The Company received an additional subpoena from the SEC on April 10, 2023, relating to, among other things, transactions with related parties. We understand that the SEC may be investigating whether or not there may have been any violations of the federal securities law. We are cooperating with the SEC,” Marathon said in a filing Wednesday.
The filing follows another subpoena issued to the corporation and its officials during the fiscal quarter ended September 30, 2021, for documents and conversations pertaining to the Hardin, Montana data center site.
After receiving comments from the SEC, the Las Vegas-based company updated its annual report and announced in February that it had discovered accounting irregularities in financial statements for numerous quarters.
The company is one of the world’s largest publicly traded crypto-mining companies by computing power, with locations across the United States.
Marathon’s stock has been closely linked to Bitcoin because the company has a significant amount of the digital commodity on its balance sheet. The shares have been regarded as a cryptocurrency proxy for people seeking exposure to the coin without physically possessing it.
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