Mining firm Marathon reports net loss of $13 million and a big boost in bitcoin production for Q1 2022

According to its Q1 2022 results, the publicly traded bitcoin mining firm Marathon saw a net loss of $13 million, despite higher earnings.

Revenues in the first quarter of 2022 were $51.7 million — a 465% increase from the same period last year and a 14% decrease from the previous quarter.

"Despite higher earnings contributions resulting from the expansion of the Company’s bitcoin mining operations, GAAP net loss for the quarter totaled $13.0 million, or ($0.13) per share, compared to net income of $83.4 million, or $0.87 per diluted share, in the prior-year quarter," the firm said. "The current-year quarter includes $19.6 million in impairment charges related to self-mined bitcoin held by the Company and a $5.5 million decrease in the fair market value of the Company’s investment fund. The prior-year period included $0.7 million in impairment charges related to self-mined bitcoin held by the Company and a $131.8 million increase in the fair market value of the Company’s investment fund."

The bitcoin mining company produced a "record" 1,259 bitcoin in the first three months of the year, according to the earnings results published Wednesday. This represents a 556% increase from the first quarter of 2021 and a 15% increase from the previous quarter.

The company said the revenue decline from the last quarter was the result of an approximately 25% decrease in average revenue per bitcoin mined, which was "partially offset by the increase in bitcoin production" during that same time. Additionally, bitcoin production was tapered by the global hashrate increase in the first quarter, said Marathon’s chairman and CEO Fred Thiel.

"We hodl all of the bitcoin produced solidifying our position as one of the largest holders of bitcoin among publicly treated companies," said Thiel during the earnings call.

Marathon also saw a dip of 30% in bitcoin production in April compared to the previous month, due to "maintenance issues" that caused their facility in Montana to operate below normal levels.

Overall, the company said it's still on track to meet its previously announced goal of reaching 23.3 exahash per second (Hh/s) in early 2023.

"We are cautiously optimistic that we are still on pace," said Thiel.

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