Marathon Digital Holdings Inc MARA shares are trading higher by 6.55% to $8.13 Friday morning after the company reported fourth-quarter financial results. Strength in overall cryptocurrencies is also lifting the stock.
What Happened: Marathon reported quarterly losses of $3.14 per share which may not compare to the analyst consensus estimate of a loss of 16 cents.
The company also reported quarterly sales of $28.42 million which missed the analyst consensus estimate of $34.95 million by 18.7%. This sales figure represents a 52.9% percent decrease over sales of $60.28 million in the same period last year.
Marathon says the company recorded a net loss of $686.7 million, or $6.05 per share, during the fiscal year ended December 31, 2022, compared to a net loss of $37.1 million, or 37 cents per share, in the prior-year period ended December 31, 2021.
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What Else: Among the setbacks for the company during FY22, per Marathon, included:
- A fourth quarter impairment charge related to the carrying value of mining rigs and advances to vendors of $332.9 million.
- Declines in the carrying value of our digital assets (both impairments and realized and unrealized losses) of $317.6 million.
- Lower total margin of $150.4 million resulting primarily from the impact of lower bitcoin prices on revenues ($77.3 million), accelerated costs related to the previously reported exit from the Hardin facility ($54.3 million), and increased depreciation costs related to an increase in mining rigs in operation ($27.8 million).
According to data from Benzinga Pro, MARA has a 52-week high of $32.74 and a 52-week low of $3.11.
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