Bitcoin Miner Marathon Digital’s Share Declines by 8% As Q2 Earnings Fell Short

Marathon Digital has released its second quarter 2024 earnings, which fell below consensus estimates. The firm amassed a revenue of $145.1 million against analysts' expectations of $157.9 million.

Subsequently, the Bitcoin miner's shares witnessed an 8% decline after the Q2 revenue filing.

Marathon's Shares Plummet After the Release Of Q2 Report for 2024

On August 1, Bitcoin mining company Marathon Digital published its earnings report for the second quarter of 2024. According to the report, Marathon Digital recorded a revenue of $145.1 million for the quarter.

However, according to Yahoo Finance, its Q2 earnings fell short of analysts' consensus estimates of $157.9 million by almost 9%. The firm also missed the expected earnings per share by-$0.58 for Q2 2024.

Amid the reporting gap, Marathon saw a 78% increase year-on-year in earnings from the $81.7 million of Q2 2023.

The report also indicated that Marathon mined 2,058 BTC tokens in Q2. This value represents a 30% decrease from the 2,926 BTC mined in the same period last year.

In addition, the number of BTC mined in Q2 2024 is 27% below the 2,811 the company mined in Q1 2024.

On average, the mining company mined 22.9 BTC tokens daily in the second quarter of 2024. This figure reflects that Marathon Digital produced 9.3 BTC coins less than its daily mining in Q2 2023. However, the firm's average price of BTC mined in Q2 2024 surged by 136% from Q2 2023.

Following its earnings report for Q2 2024, Marathon shares (MARA) nosedived. According to data from Google Finance, MARA saw a 7.78% drop on August 1 to close at $18.14.

The Q2 20224 report marks the second consecutive quarter of Marathon falling below consensus estimates. The firm also missed its Q1 predictions of $193.9 million from Zacks by 14.80%.

Meanwhile, in Q1 2024, the company's revenue hit $165.2 million, a 223% year-over-year increase.

Riot Platform's Record Q2 Revenue Closer to Analysts' Estimates

Marathon's competitor, Riot Platform, released its Q2 2024 report, reflecting a closer match to analysts' estimates. According to its data, Riot saw a revenue of $70 million for the quarter, which indicated an 8.8% YoY increase. This report is just 0.63% below Zacks' estimates for the firm's earnings.

Meanwhile, Riot mined a total of 844 BTC tokens in Q2 2024. The figure represents a 52% drop from the mined 1,775 BTC tokens in the same quarter of 2023. The firm cited the Bitcoin Halving event as one of the reasons for the drastic decline.

As of August 2, Riot's stock, RIOT, trades at $8.90, down by 4.54% over the past day. Meanwhile, Marathon received a penal fine of $138 million on July 23 for breaching a non-disclosure agreement.

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