Marathon Digital (NASDAQ:MARA) shares are down by over 8% in the early session today after the crypto miner reported its results for the fourth quarter. While MARA reported an EPS of $0.66 for the quarter, the figure would have been at -$0.02 when excluding the impact of the new FASB fair value accounting rules. The FASB rules require the measurement of crypto holdings at fair value.
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Still, MARA saw robust gains in its top line. Revenue for the quarter soared by 452% to $156.8 million. This increase was driven by higher Bitcoin (BTC-USD) production and an increase in BTC prices during the quarter. For the full year, MARA increased its BTC production by 210% to 12,852 BTC. Additionally, the company improved its hash rate capacity to 24.7 EH/S (Exahash per second) from 7 EH/S in 2022.
Importantly, Marathon pared down its debt by 56% to $331 million during the year. The company had cash and BTC holdings (nearly 15,126 BTC) of $997 million at the end of December 2023. In 2024, Marathon plans to increase its hash rate capacity to nearly 35 to 37 EH.
Is MARA a Good Investment?
Marathon’s share price has soared by nearly 376% over the past year amid a buoyant cryptocurrency market. Overall, the Street has a Hold consensus rating on Marathon Digital alongside an average price target of $21.67. However, analysts’ views on the stock could see a revision following its earnings report.
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