Marathon Digital (NASDAQ:MARA) shares slipped in after-hours trading after the crypto miner reported first-quarter results. Earnings per share came in at $1.26, which beat analysts’ consensus estimate of $0.03 per share. In addition, revenue for the quarter soared by 223.3% to $165.2 million. However, this missed analysts’ expectations of $180.7 million, which likely led to the price drop.
This increase was driven by higher Bitcoin (BTC-USD) production and an increase in BTC prices. Indeed, during the quarter, MARA increased its BTC production by 28% to 2,811 BTC while the average price of bitcoin mined jumped 126% year-over-year. Additionally, the company improved its hash rate capacity to 27.8 EH/s (Exahash per second) from 11.5 EH/s in Q1 2023.
At the end of March 2024, the company had cash and BTC holdings of $1.6 billion. In addition, Marathon plans to increase its hash rate capacity to 50 EH/s.
Is MARA a Good Investment?
Marathon’s share price has soared by nearly 100% over the past year due to a strong cryptocurrency market. Overall, the Street has a Hold consensus rating on Marathon Digital alongside an average price target of $21.76. However, analysts’ views on the stock are likely to change following its earnings report.
