• Marathon Digital Holdings announced a 58% year-on-year decline in revenue for Q4 2022 to $28.4 million.
• Bitcoin production increased by 42% to a record 1,562 in the fourth quarter and 30% to 4,144 annually in 2022.
• The company paid off its term loan and terminated its credit facilities with Silvergate Bank freeing up 3,132 Bitcoin held as collateral for the loan worth over $68 million.
Marathon Digital Holdings Revenues Drop
Bitcoin miner Marathon Digital Holdings has reported that its revenue for the fourth quarter of 2022 fell 58% year on year to $28.4 million compared to an expected $38.4 million. Annual revenues for 2022 also declined 26%, amounting to $117.8 million from a restated $159.2 million in 2021 resulting in a net loss of $686.7 million compared to a loss of $37.1 million in 2021 due mainly to impairment charges related to digital assets and mining rigs as well as advance payments made to vendors.
Record Production Levels
Despite the drop in revenues, Bitcoin production at Marathon saw impressive increases during this period with production increasing 42% to a record 1,562 in Q4 2022 and 30% overall in the year at 4,144 coins produced annually.
Credit Facilities Terminated with Silvergate Bank
In light of news that Silvergate Bank was closing down operations on 8 March, Marathon Digital announced that it had paid off its term loan and terminated its credit facilities with the bank releasing 3,132 bitcoin which were previously held as collateral valued at over $68 million at the time resulting in a reduction of debt by around $50million and annual borrowing costs by around$5million . The company is also pursuing alternative banking relationships following developments with Signature Bank .
Impact on Stock Price
On 16 March Marathon shares declined 0.13 %to$7 .5in post-market trading but were trading back at$7 .63at press time .
Overall despite reduced revenues due mainly to impairment charges , Marathon Digital was able manage successful Bitcoin production levels reaching a record high during Q4 2022 while successfully paying off their term loan and terminating credit facilities freeing up 3,132 bitcoin held as collateral .