Marathon Digital Holdings Inc. (NASDAQ: MARA), a leading cryptocurrency mining company, has reported a net loss of $191.6 million (or $1.75 per share) as its Bitcoin production slumps.
The firm reported producing 707 Bitcoin in Q2 2022, a 44% decline from the previous quarter. In Q1 2022, the company produced nearly 1,259 Bitcoin.
The quarterly production drop is primarily attributed to the prolonged energization delays in Texas and weather-related issues in Montana.
Still, Marathon produced 2,038 Bitcoin year-to-date, a 58% increase over the same period the previous year despite this quarter’s steep decline.
“Energization delays, maintenance and weather issues in Montana, and an approximately 56% decline in the price of bitcoin during the quarter, severely impacted our bitcoin production and financial results,” said Marathon’s CEO Fred Thiel.
However, the production is expected to improve this quarter. Recently, mining farms in Texas had become operational after securing a highly-anticipated tax exemption status for wind farms (the power source), according to its financial report.
Shares of Marathon are up 1.84% to $14.43 post trading, according to data from Nasdaq. The stock lost nearly 59.20% of its value this year.
Marathon adds to Bitcoin stash
Despite a tremendous fall in revenues, Marathon continues to hold most of its Bitcoin holdings, unlike many other publicly-traded mining companies.
The total Bitcoin holdings of Marathon increased to 10,055 BTC (including the newly-mined 707 Bitcoin this quarter) as of June 30, 2022, which are directly held by NYDIG digital assets fund.
The same buying pressure cannot be said for other miners in the industry, however. That’s because Bitcoin miners sold 400% of their production in June, according to data from Arcane.
Specifically, publicly-traded Core Scientific sold $165 million worth of Bitcoin to enhance its liquidity, and Bifarms sold almost half of its holdings to pay off debt.
Bitcoin (BTC) is down 1.59% over the past 24 hours and trades around $23,637, according to data from CoinMarketCap.
Bitcoin lost 65.50% of its value since its recorded all-time high of $68,789 in November 2021.