One of the world’s largest crypto mining operators, Marathon Digital, has announced its Q4 2022 earnings today. The company reported a significant increase in the amount of Bitcoin it produced annually but also announced losses that far exceeded expectations.
According to the earnings report released by Bitcoin miner Marathon Digital in the past few hours, the company lost $687 million in 2022. The size of the loss increased 18 times in just one year, as Marathon Digital reported a loss of $37 million at the end of 2021.
Quarterly Revenue Dropped by 58%!
According to the report published by the mining giant, its quarterly Bitcoin production increased from 1,098 to 1,562, representing a 42% increase. Despite producing 17 Bitcoins per day, Marathon Digital earned 58% less revenue compared to Q3.
While it was expected that the BTC miner would earn $38 million in revenue in the last quarter, the official data revealed that the company earned only $28.4 million.
Following the announcement of the financial results, Marathon Digital CEO Fred Thiel made the following statement:
“Although we have made operational progress, market conditions have had a negative impact on us. The costs associated with our exit from Hardin, the bankruptcy of Compute North, and the 64% drop in Bitcoin prices have made our profitability negative. In addition, the valuation of our digital assets has decreased due to market conditions.”
The increase in energy prices as a result of the Russian-Ukrainian war that started in February 2022 had a negative impact on miners.