MARA - Marathon Digital (Earnings 2/28AH)

SO, I know I’m not the best at these, but here goes nothin.

Marathon Digital is a crypto miner. One of the larger crypto miners in the world.
Mara currently has mined 12,232BTC, 4,144 of those being mined this year alone.
Mara’s unrestricted BTC holdings as of Dec. 30th currently sits at 7,815BTC

According to Mara’s press release that came out Jan. 5, Mara has mined 1,524 BTC at a hash rate of 7 EH/s (link to what hash rate is and how its important for miners here What is hashrate? | Robinhood). Compared to 616 BTC at a hash rate of 3.8 EH/s. A 254% increase quarter to quarter.
Below you can see the amount they’ve mined month to month.
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Mara is expected to have an EPS of -0.16 for Q4 compared to a -.65 from Q3 which came in -.3 more than an expected -.35

During Q4, Mara energized 32,000 additional miners. Making their total miners to 69(….nice) thousand.
Few other fun facts about MARA’s Q4

  • Produced 4,144 BTC in fiscal year 2022, a 30% increase from 3,197 BTC produced in fiscal year 2021
  • As of January 1, operating mining fleet consisted of approximately 69,000 active miners, capable of producing approximately 7.0 EH/s
  • 2.1 EH/s is currently pending energization after 1,000 S19 XPs were installed in December
  • Depending on Applied Digital’s energization timeline, the Company expects to have between 12.0 EH/s and 15.0 EH/s online by March 31, 2023
  • Reduced revolver borrowings from $30 million as of November 30 to $0 as of December 31, 2022
  • Unrestricted bitcoin holdings on December 31, 2022 were approximately 7,815 BTC with a fair market value of approximately $129.3 million
  • Total bitcoin holdings increased to 12,232 BTC as of December 31, 2022
  • Unrestricted cash on hand was approximately $103.7 million at December 31, 2022
  • long term debt: $808m

So far in January of 2023

  • Produced a Record 687 BTC in January 2023, 45% Increase from the Prior Month
  • Increased Unrestricted Cash to $133.8 Million and Increased Unrestricted Bitcoin Holdings to 8,090 BTC as of January 31

I could not find anything regarding bringing down their long term debt however

So as you’d expect. MARA tracks Bitcoin fairly closely. Only thing is when Bitcoin dips, MARA dips even harder, and takes much longer to come back to the same prices as it was when Bitcoin was at whatever amount. For example, todays market. Today MARA is at 6.66 and bitcoin is right around 23k even. Last time Bitcoin was at $23k was July 27th of 2022, and Mara was at 12.32, nearly 50% down from previous.

Here is the daily and weekly charts comparing BTC to MARA. Mara being in orange (Thank you con_rad)


Bitcoin does move in direct relation with todays market, and gets gets affected by inflation just like todays stock market

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One thing to also take note of is MARA’s short interest right now is 41.31% of free float, and has 635,155 FTD’s that’s T+35 is todays date (2/24) so if this were to have good earnings, and the market decides to play nice, we could possibly see some serious movement.

I’m hoping with the economy trying to heal and deal with inflation (even though the numbers today really didn’t help that situation much), with MARA being more energy efficient and steadily increasing their bitcoin production, and work toward paying down their long term debt, MARA will continue to be a good value play moving on.

Current positions are 8, 9, 10, 11 and a 17.5 (lotto) calls for March 17th. Got further out than earnings week in case the rest of the market holds down positive movement……hope it doesn’t come back to bite me!

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We should also include a SPY vs BTC chart as well since BTC is heavily influenced by market conditions. It doesn’t trade in it’s own vacuum. Just keep in mind that this is something that can greatly minimize potential movement MARA can have on good earnings.

Overall, thank you for this. I will be keeping MARA on the watchlist for next week

Well, we were supposed to get earnings report today….but looks like the books were cooked

So just FYI. I’ve been emailing Marathon digital back and forth regarding their actual earnings report. Just got an email back this morning acknowledging that they plan to meet the deadline of the 15 days after due date to report earnings, which would be tomorrow (3/16)

With how Bitcoin has been holding up, it could get interesting

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Another FYI

MARA typically likes to give investors news the first week after the month. I’m willing to bet they’re going to give news of more miners being activated and their hashrate going up. With bitcoin going up too, and holding around $28k there will be a very good chance we could see a pump in price. MARA and RIOT both have had a lot of attention on them lately.