Marathon Digital Q4 2024 Earnings Report
Key Takeaways
Marathon Digital Holdings, Inc. reported record revenues for the fourth quarter of 2024, driven by an increase in the average price of Bitcoin mined. The company's transition to a vertically integrated energy and digital infrastructure company contributed to improved operational control and efficiency. Net income increased significantly compared to the prior year, primarily driven by an increase in operating income and the change in fair value of digital assets.
Revenue increased 37% to $214.4 million compared to the fourth quarter of 2023.
Net income was $528.3 million, or $1.24 per diluted share, compared to $151.8 million, or $0.66 per diluted share, in the fourth quarter of last year.
The company held 44,893 bitcoin (including loaned and collateralized bitcoin) at year-end, valued at approximately $3.9 billion.
Adjusted EBITDA was $794.4 million compared to $259.0 million in the prior year period.
Marathon Digital
Marathon Digital
Forward Guidance
In 2025, MARA will focus on generating low-cost energy, activating depreciated hardware and energy assets, and running a vertically integrated model to achieve greater cost control. The company aims to be the dominant player in Bitcoin mining while expanding its footprint in energy generation and establishing a presence in AI and adjacent markets.
Positive Outlook
- Build infrastructure that is not just about mining bitcoin, but about being the lowest-cost producer.
- Acquire sites and generate low cost energy.
- Activate depreciated hardware and energy assets.
- Run a vertically integrated model – from software and hardware, and now, to energy generation.
- Build a business that is more resilient to bitcoin’s price volatility by ramping up development and sales of data center infrastructure.
Challenges Ahead
- Energy costs will only rise.
- The 2028 halving will likely force another industry-wide reckoning.
- Many may not survive.
- Those that fail to differentiate will be relegated to being price takers in an increasingly competitive market.
- Peers will have to scramble to adapt or be left behind.