Bitcoin miner Marathon Digital Holdings announced that its revenue for the fourth quarter of 2022 fell 58% year on year to $28.4 million.
In Q4 2022, Bitcoin production at Marathon, however, increased by 42% to a record 1,562. Annual production increased by 30% to 4,144 in 2022.
Marathon Digital Holdings, a Bitcoin mining company, announced on 16 March that its revenue for the fourth quarter of 2022 fell 58% year on year to $28.4 million.
The Bitcoin miner was expecting revenue of around $38.4 million for the fourth quarter. Last month, the company canceled an earnings call and delayed the release of results to correct accounting errors related to the impairment of digital assets.
As per the latest report, full-year revenue for 2022 fell down to $117.8 million, reflecting a drop of 26% from a restated $159.2 million in 2021. The company’s net loss for the year was $686.7 million, compared to a loss of $37.1 million in 2021.
The results were impacted by a $332.9 million fourth-quarter impairment charge related to the carrying value of mining rigs and advance payments to vendors, in addition to the decline of $317.6 million in the carrying value of its digital assets.
In the fourth quarter of 2022, Bitcoin production increased by 42% to a record 1,562. Annual production increased by 30% to 4,144 in 2022.
Marathon shares declined to $7.5 yesterday (16 March) in post-market trading, showing a drop of 0.13%. At press time, it was trading at $7.63.
Credit facilities with Silvergate terminated
As soon as the news of Silvergate Bank closing down its operations spread on 8 March, Marathon Digital announced that it had paid off its term loan and terminated its credit facilities with the bank.
“In February 2023, we terminated our credit facilities with Silvergate Bank, which resulted in the release of 3,132 bitcoin that were previously held as collateral,” CEO Fred Thiel said in a statement. “We are also pursuing alternative banking relationships in light of the recent developments with Signature Bank.”
Marathon stated that the move will free up the 3,132 Bitcoin held as collateral for the loan, which was valued at over $68 million at the time. This would result in a $50 million reduction in debt and a $5 million reduction in annual borrowing costs, it added.
Marathon had agreed to a $100 million revolving credit facility with Silvergate Bank in October 2021, with the purpose of using it to purchase Bitcoin mining equipment and fund its mining operations.