Bitcoin Miner Marathon Announces Q4 2022 Results: A Year Of Challenges & Optimism

Marathon, North America’s largest Bitcoin mining company, has announced its financial and operational results for Q4 2022. The company reported a net loss of $686.7 million, or $6.05 per share, compared to a net loss of $37.1 million, or $0.37 per share, in 2021. The company recorded an increase in mined Bitcoins from 3,197 BTC in 2021 to 4,144 BTC in 2022, a 30% increase.

Marathon also achieved several operational milestones during the year, becoming more sustainably powered by shifting away from fossil-fuel generation and deploying behind the meter at a large wind farm in Texas.

However, the Bitcoin miner faced several challenges in 2022, including accelerated costs related to exiting Hardin and the Compute North bankruptcy and a significant decline in the price of Bitcoin, which reduced its margin and resulted in impairment charges for its Bitcoin holdings.

According to the press release, compared to the prior year, unfavorable variances included a fourth-quarter impairment charge of $332.9 million related to the carrying value of mining rigs and advances to vendors.

The carrying value of digital assets also declined, resulting in impairments and realized and unrealized losses totaling $317.6 million.

Impairments of $55.7 million related to the Compute North bankruptcy and previously disclosed legal reserves of $26.1 million were also included. Interest expense increased by $13.4 million.

However, partially offsetting these unfavorable variances were a significant reduction in general and administrative expenses of $117.6 million, gains on sales of mining rigs of $83.9 million, and a favorable income tax variance of $44.4 million.

Bitcoin Miner Marathon’s CEO Optimistic About Future

Despite these challenges, Marathon’s CEO, Fred Thiel, remains optimistic about the company’s future. He said that Marathon is in a stronger position today than it was a year ago, with a strong balance sheet and a roadmap to hitting its primary targets:

We have two primary goals for 2023: the first is to energize our previously purchased mining rigs to reach our target of 23 exahashes by the middle of this year, and the second is to optimize our performance – to become more effective and more efficient.

Thiel added that Marathon is pursuing alternative banking relationships in light of recent developments with Signature Bank and believes that these strategic actions have bolstered its financial position. It will continue providing the company with optionality, which is essential given the current environment.

Nevertheless, Marathon faced several challenges in 2022 that affected its financial performance, but the company remains optimistic about its future. It aims to become one of North America’s most sustainably operated Bitcoin miners and achieve its goals for 2023.

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