LAS VEGAS, Monday, August 19, 2024- Bitcoin mining company Marathon Digital reported a net loss of $199.7 million in the second quarter, a significant increase from the previous year’s loss of $9 million. The company blamed “unexpected equipment failures” and the Bitcoin halving event for the downturn.
Despite a 78% year-over-year revenue increase to $145.1 million, Marathon’s shares fell 7.78% on Thursday. The company’s stock price has declined by 20.89% year-to-date.
Marathon produced 2,058 bitcoin in Q2, a 30% decrease from the same period in 2023. The company sold 51% of its mined bitcoin to cover operating costs but has recently announced a shift to a “HODL” strategy, purchasing an additional $100 million worth of bitcoin.
While the company achieved a record-high hash rate of 31.5 exahash per second, the challenges faced by Marathon reflect the broader industry impact of the Bitcoin halving.
