New York, NY – Marathon Digital stock on the NASDAQ exchange experienced an over 8% decline this morning following the release of their fourth-quarter results. Despite reporting an EPS of $0.66 for the quarter, the impact of new FASB fair value accounting rules would have resulted in a figure of -$0.02. These accounting rules necessitate the valuation of crypto assets at fair market value.
However, the company saw a significant increase in revenue during the quarter, with a staggering 452% surge to $156.8 million. This surge was attributed to higher Bitcoin production and a rise in Bitcoin prices during the same period. Over the full year, Marathon Digital increased its Bitcoin production by 210% to 12,852 BTC, with an improvement in hash rate capacity to 24.7 EH/S from 7 EH/S in 2022.
During the year, the company managed to reduce its debt by 56% to $331 million. As of December 2023, Marathon held cash and BTC totaling approximately $997 million. Looking ahead to 2024, Marathon plans to further enhance its hash rate capacity to around 35 to 37 EH.
The stock price of Marathon has surged by nearly 376% over the past year, benefiting from the bullish cryptocurrency market. While analysts currently hold a Hold consensus rating on Marathon Digital with an average price target of $21.67, there is potential for revisions following the recent earnings report.
Investors and analysts will be closely watching how the company’s plans for hash rate capacity expansion unfold and how it continues to navigate the dynamic crypto market environment. Marathon’s ability to sustain its growth momentum and effectively manage its debt levels will be key factors in determining its future performance and attractiveness as an investment option.