Why Bitcoin-Related Stock Marathon Digital Is Sliding After Hours

Why Bitcoin-Related Stock Marathon Digital Is Sliding After Hours

Marathon Digital Holdings Inc MARA shares are trading lower in Monday's after-hours session after the company reported worse-than-expected financial results.

Marathon Digital reported second-quarter revenue of $24.9 million, which missed the estimate of $37.57 million, according to data from Benzinga Pro. Marathon's top-line results were down from $29.3 million in the first quarter. 

The company reported a net loss of $(191.6) million or $1.75 per share. Marathon attributed the net loss to the decline in the price of Bitcoin BTC/USD in the second quarter, as well as the accelerated recognition of expenses related to the previously announced exit from its Montana facility.

"Energization delays, maintenance and weather issues in Montana, and an approximately 56% decline in the price of bitcoin during the quarter, severely impacted our bitcoin production and financial results," said Fred Thiel, chairman, and CEO of Marathon.

Marathon produced 707 Bitcoins in the second quarter, up 8% year-over-year. However, Bitcoin production was down sequentially from 1,259 in the first quarter. Year-to-date, Marathon has produced 2,038 Bitcoins, a 58% increase over the same period in the prior year.

See Also: Novavax Q2 Results Trail Street Expectations, Slashes FY22 Outlook By 50%

MARA Price Action: Marathon has traded between $35.48 and $5.20 over a 52-week period.

The stock was down 1.46% in after-hours at $14.22 at press time.

Photo: SnapLaunch from Pixabay.

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