Marathon Digital (NASDAQ:MARA) shares are down by over 8% in the early session today after the crypto miner reported its results for the fourth quarter. While MARA reported an EPS of $0.66 for the quarter, the figure would have been at -$0.02 when excluding the impact of the new FASB fair value accounting rules. The FASB rules require the measurement of crypto holdings at fair value.
Still, MARA saw robust gains in its top line. Revenue for the quarter soared by 452% to $156.8 million. This increase was driven by higher Bitcoin (BTC-USD) production and an increase in BTC prices during the quarter. For the full year, MARA increased its BTC production by 210% to 12,852 BTC. Additionally, the company improved its hash rate capacity to 24.7 EH/S (Exahash per second) from 7 EH/S in 2022.
Importantly, Marathon pared down its debt by 56% to $331 million during the year. The company had cash and BTC holdings (nearly 15,126 BTC) of $997 million at the end of December 2023. In 2024, Marathon plans to increase its hash rate capacity to nearly 35 to 37 EH.
Is MARA a Good Investment?
Marathon’s share price has soared by nearly 376% over the past year amid a buoyant cryptocurrency market. Overall, the Street has a Hold consensus rating on Marathon Digital alongside an average price target of $21.67. However, analysts’ views on the stock could see a revision following its earnings report.
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