MARA (MARA) Q3 2024 earnings summary

Executive summary

• Announced and completed major acquisitions and development of Ohio and Garden City data centers, adding over 872 MW of capacity and increasing owned and operated compute capacity by over 70% year-over-year.

• Energized hash rate rose 93% year-over-year to 36.9 EH/s in Q3 2024, surpassing 40 EH/s post-quarter, with a 9% sequential increase in October.

• Revenue for Q3 2024 rose 35% year-over-year to $131.6M, driven by higher bitcoin prices despite lower production due to the April 2024 halving event.

• Net loss for Q3 2024 widened to $124.8M, impacted by higher operating expenses, depreciation, and the absence of a prior year debt extinguishment gain.

• Adopted a full HODL bitcoin treasury policy, increasing bitcoin holdings to 26,747 BTC valued at $1.69B as of September 30, 2024, and over 27,000 BTC post-quarter.

Financial highlights

• Q3 2024 revenue: $131.6M (+35% YoY); nine months ended September 30, 2024: $442.0M (+92% YoY).

• Net loss Q3 2024: $124.8M; net income for nine months: $12.7M (down from $109.3M YoY).

• Adjusted EBITDA for Q3 2024 was $21.8M, a $43.1M improvement from the prior year period.

• Cash and equivalents at September 30, 2024: $164.3M; digital assets: $1.71B; cash and BTC holdings grew to $1.9B at quarter end.

• Cost per petahash per day improved 18% YoY in Q3 to $37.1; sequential quarter cost per petahash per day fell 10% from Q2 to Q3 2024.

Outlook and guidance

• Targeting 50 EH/s hash rate by year-end 2024, with further cost reductions expected as new sites come online.

• Efficiency improvements underway, targeting sub-22.7 J/TH as S21 Pros and immersion cooling are deployed.

• Recently secured a $200M line of credit collateralized by bitcoin holdings, fully utilized as of October 17, 2024.

• Management expects sufficient liquidity for the next 12 months, supported by cash, digital assets, and access to capital markets.

• Ongoing focus on operational efficiency, cost reduction, and expansion of owned and operated mining sites.