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Dec 31, 2024
Marathon Digital Q4 2024 Earnings Report
Marathon Digital reported record-high revenue, net income, and Adjusted EBITDA for Q4 2024, driven by increased bitcoin prices and operational efficiency, despite the April halving event.
Key Takeaways
Marathon Digital Holdings achieved record-high revenue, net income, and Adjusted EBITDA in Q4 2024. Revenues increased 37% year-over-year to $214.4 million, net income surged 248% to $528.3 million, and Adjusted EBITDA grew 207% to $794.4 million. The company's strategic shift to a vertically integrated energy and digital infrastructure model, coupled with significant acquisitions and operational improvements, contributed to these strong results.
Record-high revenue of $214.4 million in Q4 2024, a 37% increase from Q4 2023.
Net income increased 248% to $528.3 million in Q4 2024, with diluted EPS of $1.24.
Adjusted EBITDA reached a new industry benchmark of $794.4 million in Q4 2024, up 207% year-over-year.
Energized hashrate increased 115% to 53.2 EH/s in Q4 2024, and direct energy cost per bitcoin from owned sites was $28,801 for 2024.
Marathon Digital
Marathon Digital
Forward Guidance
MARA is accelerating its transformation into a vertically integrated energy and technology solutions provider in 2025, focusing on owning and operating infrastructure and energy generation assets to reduce costs and expand into AI and adjacent markets.
Positive Outlook
- Securing 300% more energy capacity (from ~0.5 GW to ~1.7 GW) to support mining and future AI workloads.
- Deployment of owned power generating assets (136 MW operational) to reduce reliance on grid power and lower costs.
- Conversion of waste heat into opportunity, subsidizing mining costs and providing renewable heating to communities.
- Deployment of Auradine ASIC miners and investment in distributed energy technology to reduce dependency on foreign suppliers.
- Strategic focus on energy management, load balancing, and edge infrastructure technologies to capitalize on AI inference opportunities.
Challenges Ahead
- Potential for increased energy costs for grid-attached miners, forcing industry consolidation.
- The 2028 halving event is expected to force another industry-wide reckoning, potentially impacting less differentiated miners.
- Volatility in BTC price is expected to impact earnings to a larger extent due to the company's large HODL position.
- The need to differentiate by securing low-cost energy and vertically integrating operations to survive in an increasingly competitive market.
- Uncertainty regarding the exact timing and scale of AI inference workload growth and its impact on revenue opportunities.