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    MARA Holdings Shares Fall 9.1% Despite Increase in Bitcoin Mining, Misses Q3 Earnings Estimates

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    Bitcoin mining company, MARA Holdings, saw its shares drop by 9.1% following a lower than expected Q3 earnings report. Despite increasing revenue by 34.5% year-on-year to $131.6 million, it fell short of the predicted $148.1 million. The company mined 147 more Bitcoin blocks and upped its total holdings by 45% to 26,747 bitcoins. However, operational costs increased which led to a net loss of $124.8 million. The company is planning for the future with a new investment into its facilities in Ohio.

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    The Bitcoin mining company, MARA Holdings also known as Marathon Digital, saw its shares drop by 9.1% after the market closed. This was due to their third-quarter earnings report falling short of what analysts expected.

    MARA announced its Q3 earnings on the 12th of November, which showed a loss of $0.34 per share. This was a bit worse than what Wall Street was predicting. The company’s revenue did go up by 34.5% compared to the same period last year and they earned $131.6 million. However, the revenue was less than the predicted $148.1 million.

    The company’s expenses related to running the business increased by $40 million during this quarter which resulted in a net loss of $124.8 million.

    Following the earnings report, MARA’s stock price dropped to $22.94, down by 9.1% after the market closed. The shares had previously closed the day at $25.23. This happened the day after on 11th November when the company’s shares closed with a 30% increase as Bitcoin’s price headed towards $90,000. This year, MARA’s shares have increased by 10%.

    During Q3, MARA mined 147 more Bitcoin blocks, as its hash rate, representing the total processing power that the miner has, jumped by 17.1% to nearly 37 exahashes per second. This helped to reduce the overall loss.

    In addition, MARA increased the number of Bitcoins it holds by 45% to 26,747 Bitcoins, worth about $2.36 billion. This was also the first full quarter when the company decided “to retain all Bitcoin” as part of its new policy. Moreover, it spent $100 million from its reserves to buy more Bitcoin during this period.

    MARA said, “While we continue to invest in our mining operations and grow our business, we will also grab the chances to buy Bitcoin, particularly when its price goes down.”

    Still, there’s something that the Q3 report didn’t show. On November 11, MARA purchased a new capacity of 372 megawatts (MW) at its facility in Ohio, adding to its 152MW which is already working. They didn’t reveal when the remaining 220MW will be up and running. But generally, it can take a year to a year and a half before they start seeing returns after investing in mining equipment.

    MARA is currently the largest public Bitcoin miner worldwide and has a market value of $7.43 billion.

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