As per Marathon Digital Holdings, the fourth quarter of the year's sales was $28.4 million, a 58.4% year-over-year decline.
According to Marathon Digital Holdings, fourth-quarter sales was $28.4 million, a 58.4% decrease year over year.
Marathon delayed the release of its financial results and postponed an earnings call last month in order to correct accounting errors related to the impairment of digital assets.
Full-year revenue dropped to $117.8 million in 2022 from a restated $159.2 million in 2021, a 26% drop. In contrast to the loss of $37.1 million in 2021, the net loss for the fiscal year was $686.7 million.
A fourth-quarter impairment charge of $332.9 million related to the carrying value of mining rigs and advances to suppliers, as well as $317.6 million in declines in the carrying value of digital assets, had an impact on the results.
The impact of lower Bitcoin prices on revenues ($77.3 million), accelerated costs associated with the previously reported exit from the Hardin facility ($54.3 million), and increased costs depreciation because of an increase in the number of mining rigs in operation ($27.8 million) contributed to the lower total margin of $150.4 million.
The fourth quarter of 2022 saw a 42% increase in bitcoin production, reaching a high of 1,562. The annual output will have increased to 4,144 by 2022, a 30% increase. Fred Thiel, chairman and CEO of Marathon, said:
“2022 was a difficult year to be a Bitcoin miner, but our team met each challenge head on, and we emerged smarter and more resilient.”
The CEO has also established the following goals for 2023:
“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.”
Marathon asserted that the move released the 3,132 Bitcoin that Silvergate Bank had pledged as security for the loan due in February 2023, with the goal of using the money to buy Bitcoin mining equipment and support Marathon's mining operations. The corporation estimates that this would lead to a $50 million debt reduction and a $5 million reduction in annual borrowing costs.