Bitcoin miner Marathon Digital’s Q4 2022 revenue falls to this figure

• Bitcoin miner Marathon Digital Holdings announced that revenue for the fourth quarter of 2022 fell 58% year over year to $28.4 million.
• However, in Q4 2022, Bitcoin production at Marathon increased by 42% to a record 1,562. Annual production increased by 30% to 4,144 in 2022.

Marathon Digital Holdings, a Bitcoin mining company, announced on March 16 that revenue for the fourth quarter of 2022 fell 58% year over year to $28.4 million.

The Bitcoin miner was waiting revenue of around $38.4 million for the fourth quarter. Last month, the company canceled an earnings call and delayed the publication of results to correct accounting errors related to the impairment of digital assets.

According to the latest report, full-year 2022 revenue fell to $117.8 million, reflecting a 26% drop from a restated $159.2 million in 2021. The company’s net loss for the year was $686.7 million, compared with a loss of $37.1 million in 2021.

The results were impacted by a $332.9 million write-down in the fourth quarter related to the book value of mining rigs and advance payments to suppliers, in addition to the $317.6 million decrease in the book value of digital assets.

In the fourth quarter of 2022, Bitcoin production increased by 42% to a record 1,562. Annual production increased by 30% to 4,144 in 2022.

Source: Marathon Digital Holdings

Marathon stock fell to $7.50 yesterday (March 16) in post-market trading, down 0.13%. At press time it was trading at $7.63.

Source: Yahoo Finance

Credit facilities with Silvergate terminated

As soon news of Silvergate Bank which closes its business spread on March 8, Marathon Digital announced that it had paid off its term loan and terminated its credit facilities with the bank.

“In February 2023, we terminated our credit facilities with Silvergate Bank, resulting in the release of 3,132 bitcoin previously held as collateral,” CEO Fred Thiel said in a statement. “We are also pursuing alternative banking relationships in light of recent developments with Signature Bank.”

Marathon stated that the move will free up the 3,132 Bitcoin held as collateral for the loan, which was valued at over $68 million at the time. This will result in a $50 million reduction in debt and a $5 million reduction in annual borrowing costs, it added.

Marathon had agreed to a $100 million revolving credit facility with Silvergate Bank in October 2021, for the purpose of using it to purchase Bitcoin mining equipment and finance its mining operations.