Bitcoin mining giant Marathon Digital Holdings Inc. (MARA) is celebrating a blockbuster fourth quarter and full year 2024. The company announced record-high revenue, net income, and adjusted EBITDA, smashing analyst expectations and sending its stock price soaring over 7% in after-hours trading,
Marathon reported Q4 earnings per share (EPS) of $1.24, a stark contrast to the forecasted loss of -$0.16. Revenue for the quarter reached a staggering $214.4 million, exceeding estimates of $180.74 million and marking a robust 37% year-over-year increase. For the full year 2024, Marathon’s revenue surged to $656.4 million, a remarkable 69% jump compared to the previous year. Net income for Q4 alone hit $528.3 million, with adjusted EBITDA reaching $794.4 million.
These results reflect Marathon’s strategic expansion into energy and digital infrastructure, positioning it as a dominant force in the Bitcoin mining sector. The company highlighted a remarkably low direct energy cost of $28.8K per Bitcoin for 2024 from its owned sites and a BTC yield per share of 62.9% for the year, showcasing operational efficiency and profitability.
Investors reacted enthusiastically to the earnings beat, driving MARA stock up by 7.47% in after-hours trading to $13.38. Despite trading near its 52-week low of $12.05, analysts suggest the stock may be undervalued, pointing to potential value opportunities.
“We are an energy transformation company. We’re in the business of turning energy into digital value,” CEO Fred Thiel said during the earnings call, about Marathon’s strategic pivot. He stressed the company’s focus on “capital efficiency” over simply pursuing scale, indicating a strategic shift towards sustainable and profitable growth.
Looking ahead, Marathon is setting its sights on international expansion, aiming to achieve 50% international energy capacity by 2028, while maintaining its commitment to low-cost energy generation. The company is also venturing into new frontiers, exploring opportunities in AI inference compute with planned pilot projects in 2025, signaling diversification beyond pure Bitcoin mining.
However, Marathon also offered a stark warning regarding the future landscape of Bitcoin mining. In its shareholder letter, the company cautioned that miners relying on traditional grid-attached power sources will face a “reckoning” after the next Bitcoin halving in 2028, predicting that rising energy costs could force many less efficient miners out of the market.
“For those miners still relying on grid-attached power, the writing is on the wall. Energy costs will only rise. The 2028 halving will likely force another industry-wide reckoning. Many may not survive,” the letter stated.
Marathon argues that differentiation is key to survival in an increasingly competitive market. Its strategy centers on securing low-cost energy sources – evidenced by their recent acquisition of a Texas wind farm – vertically integrating operations, and diversifying revenue streams beyond Bitcoin mining, including a move into data center infrastructure to cater to emerging computing needs like AI.
