Bitcoin (BTC-USD) miner Marathon Digital (NASDAQ:MARA) impressed investors as it swung to earnings per share (EPS) of $0.35 in the third quarter from a loss per share of $0.62 in the prior-year quarter. The Q3 2023 bottom line came in as a surprise, given that analysts were expecting a loss per share of $0.11. MARA shares rallied 10% in Thursday’s pre-market trading.
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Marathon Digital’s Q3 Results
Marathon’s Q3 earnings were driven by a solid rise in revenue to $97.8 million from $12.7 million in the third quarter of 2022. The company’s revenue gained from a 467% jump in Bitcoin production and a 32% rise in average BTC prices. However, MARA’s Q3 revenue lagged analysts’ expectations of $99.6 million.
It is worth noting that the company sold 66% of the Bitcoin produced in the quarter to cover its operating costs. This sale resulted in gains of $31.7 million on digital assets in Q3 2023. The company improved its energized hash rate (indicates the computational power utilized by miners to process transactions on the blockchain) to 19.1 Exahash per second (EH/s) from 3.8 EH/s in Q3 2022.
Marathon ended the quarter with an installed hash rate of 23.1 EH/s. Management expects to reach a hash rate of 26 EH/s by the end of this year and aims to grow it by 30% in 2024. The company also highlighted that it took measures to strengthen its financial position ahead of the Bitcoin halving event next year. In particular, the company reduced its long-term debt by 56%, thanks to the completion of a $417 million note exchange in September.
What is the Projection for Marathon Digital Stock?
Wall Street is sidelined on Marathan Digital stock, with a Hold consensus rating based on two Buys, three Holds, and one Sell. The average price target of $11.66 implies 36.4% upside. MARA shares have rallied 150% year-to-date, driven by higher Bitcoin prices. Analysts are expected to revise their price targets in reaction to the results.
