Marathon Digital Holdings sank nearly 7%

Tiger Newspress2021-03-16

(March 16) Marathon Digital Holdings sank nearly 7%.

  • Marathon Digital Holdings Q4 GAAP EPS of -$0.10misses by $0.09.
  • Revenue of $2.6M (+766.7% Y/Y) in-line.

Fourth Quarter 2020 Financial Results

  • Total revenue increased 854% to $2.6 million from $0.3 million in the fourth quarter of 2019.
  • Operating loss was $5.0 million compared to an operating loss of $1.3 million in the fourth quarter of 2019. In the fourth quarter of 2020, cost of goods sold included $3.0 million of non-cash items, including $1.2 million of Bitcoin server depreciation, an $871,000 impairment on mining equipment sold subsequent to year end, and a $969,000 non-cash expense for server maintenance. Excluding non-cash items, operating loss in the fourth quarter of 2020 was $1.9 million.
  • Net loss totaled $5.2 million or $(0.10) per diluted share, compared to net loss of $1.2 million or $(0.17) per diluted share in the fourth quarter of 2019.

In the fourth quarter 2020, the Company generated over 157 bitcoins. The Company last sold bitcoin on October 21, 2020, and since then, has been accumulating or “hodling” all bitcoin generated. As of December 31, 2020, the Company held approximately 126 bitcoins. Subsequent to the year end, the Company invested $150 million into a fund-of-one and purchased 4,813 bitcoin using proceeds generated from an at-the-market offering at an average purchase price of $31,168.

Full Year 2020 Financial Results

  • Total revenue increased 268% to $4.4 million from $1.2 million in the fiscal year 2019.
  • Operating loss was $9.8 million compared to $4.2 million in 2019.
  • Net loss totaled $10.4 million, or $(0.13) per diluted share, compared to net loss of $3.5 million or $(0.53) per diluted share in 2019.
  • Cash used in operations was $7.8 million, compared to $3.3 million during 2019.
  • At December 31, 2020, cash and cash equivalents was $216.1 million compared to $17.3 million at September 30, 2020 and $693,000 at December 31, 2019.
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