MARA Holdings Reaches New Heights with 37% Revenue Growth in Bitcoin Mining
MARA Holdings – Bitcoin mining company MARA Holdings reported impressive financial results for the fourth quarter of 2024, surpassing analysts’ expectations despite the challenges posed by the Bitcoin halving event. The company’s revenue surged by 37%, reaching $214.4 million in Q4 2024, compared to $156.8 million in Q4 2023. This increase was driven by a 132% rise in the average price of Bitcoin mined during the period.
Strong Profit Growth and Increased Earnings Per Share
MARA’s net income for the quarter skyrocketed by 248%, totaling $528.3 million, compared to $151.8 million in Q4 2023. Despite a $64.2 million revenue drop due to a decrease in Bitcoin production, which was impacted by the halving event, the company still saw a significant boost in earnings. The halving reduced the reward miners receive from solving computational puzzles by 50%, from 6.250 BTC to 3.125 BTC per block.
Mining Production Declines, But Efficiency Increases
Although MARA mined 2,492 BTC in Q4 2024, a 27% decrease from the 3,490 BTC produced in Q4 2023, the company achieved a 25% increase in blocks won, reaching 703 blocks in Q4 2024 compared to 562 blocks in Q4 2023. Additionally, earnings per share (EPS) came in at $1.24, far exceeding analysts’ expectations, who had predicted a loss of $0.32 per share.
Strategic Expansion and Rising Energy Costs
MARA’s hashrate grew by 115%, reaching 53.2 EH/s in Q4 2024, up from 24.7 EH/s in the same period of 2023. This increase was driven by strategic acquisitions and expanded energy capacity. However, energy and hosting costs rose sharply by 70%, totaling $127.4 million in Q4 2024. The company’s direct energy cost per Bitcoin increased to $28,801 from $23,000 the previous year, reflecting the challenges of maintaining profitability in an evolving market.
Bitcoin Holdings Remain Intact
MARA continues to focus on strategic growth, maintaining its 44,893 BTC holdings, worth $4.6 billion, without selling any Bitcoin in Q4. The company’s 62% BTC yield per share for 2024 further solidifies its standing in the Bitcoin mining industry.
Challenges for Other Miners
While MARA has successfully navigated these challenges, other Bitcoin miners, such as Bitdeer, are struggling with rising energy costs and the impact of the halving event. Bitdeer reported a significant loss of $532 million in Q4 2024, and its stock dropped by 20% following the announcement.
Disclaimer: This article is for informational purposes only and does not constitute investment advice. Cryptocurrencies and stocks, particularly in micro-cap companies, are subject to significant volatility and risk. Please conduct thorough research before making any investment decisions.
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