Group 1: Earnings Performance - Marathon Digital Holdings, Inc. reported quarterly earnings of $1.24 per share, significantly beating the Zacks Consensus Estimate of a loss of $0.32 per share, representing an earnings surprise of 487.50% [1] - The company posted revenues of $214.39 million for the quarter ended December 2024, surpassing the Zacks Consensus Estimate by 12.25%, compared to year-ago revenues of $156.77 million [2] Group 2: Stock Performance and Outlook - Marathon Digital shares have declined approximately 26% since the beginning of the year, while the S&P 500 has gained 1.3% [3] - The current consensus EPS estimate for the upcoming quarter is -$0.10 on revenues of $223.65 million, and for the current fiscal year, it is -$0.56 on revenues of $949.19 million [7] Group 3: Industry Context - The Technology Services industry, to which Marathon Digital belongs, is currently ranked in the top 28% of over 250 Zacks industries, indicating a favorable outlook compared to the bottom 50% [8]

Financial Performance - Revenues increased 37% to $214.4 million in Q4 2024 from $156.8 million in Q4 2023; full-year revenues grew 69% to $656.4 million from $387.5 million in 2023[7] - Net income surged 248% to $528.3 million in Q4 2024 compared to $151.8 million in Q4 2023; for the full year, net income grew 107% to $541.0 million from $261.2 million in 2023[7] - Adjusted EBITDA rose 207% to $794.4 million in Q4 2024, setting a new industry benchmark, compared to $259.0 million in Q4 2023; full-year Adjusted EBITDA was $1.2 billion compared to $417.1 million in 2023[7] - Net income for Q4 2024 was $528.3 million, or $1.24 per diluted share, up 248% from $151.8 million, or $0.66 per diluted share, in Q4 2023; full year net income increased 107% to $541.0 million from $261.2 million[47][48] - Adjusted EBITDA reached $794.4 million in Q4 2024, a significant increase from $259.0 million in Q4 2023, and totaled $1.2 billion for the full year compared to $417.1 million in the prior year[58][59] - General and administrative expenses for the full year were $114.4 million, up from $59.8 million in the prior year, primarily due to business scale and acquisitions[57] - General and administrative expenses for Q4 2024 were $77.924 million, up from $38.014 million in Q4 2023[72] Bitcoin Production and Holdings - The company produced 2,492 BTC in Q4 2024, a decrease of 27% year-over-year, and mined a total of 9,430 BTC for the full year, reflecting a significant impact from the April 2024 halving event[38][44][45] - The company held 44,893 BTC as of December 31, 2024, valued at approximately $3.9 billion based on a spot price of $93,354 per bitcoin[60] - The company acquired 22,065 BTC at an average price of $87,205 during 2024, and did not sell any BTC in Q4 2024[64][60] - The company produced 2,492 BTC in Q4 2024, down from 4,242 BTC in Q4 2023, a decrease of 41.3%[73] Energy Management and Costs - Direct energy cost per bitcoin was $28,801 in 2024, with cost/KWh at $0.039 for owned sites[7] - The average direct energy cost per bitcoin for owned mining sites was $28,801 in 2024, with energy and hosting costs totaling $381.6 million for the year, a 71% increase from $223.3 million in 2023[53][51] - The average cost per kilowatt-hour was $0.046 in Q4 2024, compared to $0.039 in the previous year[73] - The company launched a 25-megawatt micro data center initiative, converting excess flared gas into power for operations[10] Hashrate and Mining Capacity - Energized hashrate increased 115% to 53.2 EH/s in Q4 2024 from 24.7 EH/s in Q4 2023[7] - Energized hashrate increased 115% year-over-year to 53.2 EH/s in Q4 2024, with the deployment of 132,000 new miners[38][55] - The company's energized hashrate at the end of Q4 2024 was 53.2 Exahashes per second, doubling from 24.7 Exahashes per second in Q4 2023[73] Capital Efficiency and Returns - Return on Capital Employed was 30.6% over the last 12 months, indicating strong capital efficiency compared to competitors[38][65] - The return on capital employed for the year was 30.6%, compared to 28.1% in the previous year[73] Risks and Forward-Looking Statements - Forward-looking statements include expectations about future operations, growth targets, and technology development, which are subject to risks and uncertainties[82] - The Company warns that past financial performance may not reliably indicate future performance, and historical trends should not be used to anticipate future results[81] - Risks and uncertainties described in the annual report could significantly impact the Company's business and financial condition[81] - The Company does not undertake to update forward-looking statements except as required by law, cautioning against undue reliance on these statements[82] - Actual results may differ materially from forward-looking statements due to various factors, including those outlined in the risk factors section of the annual report[82]

Financial Performance - MARA Holdings, Inc. reported record-high revenue, net income, and adjusted EBITDA for the full year and Q4 2024 [1] - The direct energy cost per bitcoin for 2024 from owned sites is $28.8K [1] - The BTC yield per share for 2024 is 62.9% [1] Investor Communication - Investors can access the fourth quarter 2024 shareholder letter on MARA's website [2] - A copy of the shareholder letter will be submitted to the Securities and Exchange Commission on a Form 8-K [2] Conference Call Details - MARA will hold a webcast and conference call on February 26, 2025, at 5:00 p.m. Eastern Time [3][4] - Registration for the conference call is available through a provided link [4]

Core Viewpoint - Marathon Digital Holdings, Inc. (MARA) is expected to report a loss of 32 cents per share for Q4 2024, a decline from a loss of 2 cents in the same quarter last year, with revenues projected at $191 million, reflecting a 21.8% year-over-year growth [1][2]. Earnings Estimates - No upward revisions have been made to the earnings estimates for the upcoming quarter in the past 30 days, with one downward revision noted, worsening the consensus estimate from a projected loss of 30 cents to 32 cents [2]. - The earnings surprise history shows that MARA has surpassed the Zacks Consensus Estimate in three of the past four quarters, with an average negative surprise of 136.1% [4][5]. Earnings ESP and Zacks Rank - MARA has an Earnings ESP of -57.48% and holds a Zacks Rank of 3 (Hold), indicating a lesser chance of an earnings beat this time [6][7]. Revenue Generation Strategy - The company's revenue in the upcoming quarter is likely to benefit from its dual approach to Bitcoin mining, which combines revenue generation with strategic asset accumulation, allowing for lower-cost Bitcoin production [8]. - MARA retains a significant portion of the Bitcoin it mines, positioning itself for potential price appreciation over time [9]. Stock Performance - Over the past three months, MARA's stock has declined by 39%, contrasting with a 39% rally in the industry, while competitors like Riot Platforms, Inc. (RIOT) and HuT 8 Corp. (HUT) saw declines of 6% and 25%, respectively [10]. Investment Considerations - MARA is viewed as a cautious hold amid mixed performance, with strategic expansion in mining capacity and cost-effective acquisitions supporting long-term growth, although near-term profitability remains challenging [14].

Core Viewpoint - Strategy (formerly MicroStrategy) has significantly outperformed MARA Holdings (formerly Marathon Digital) over the past year, with Strategy's stock rising over 370% while MARA's stock fell nearly 35% despite Bitcoin's price rallying nearly 90% during the same period [2]. Group 1: Company Overview - Strategy is the world's largest corporate holder of Bitcoin, having accumulated 450,000 Bitcoins worth approximately $97 billion, purchased at an average price of $62,691, totaling about $28.2 billion [4]. - MARA is the world's largest Bitcoin miner, with a hash rate of 53.2 exahash per second (EH/s) and an average production of 24.2 Bitcoins per day [6]. Group 2: Financial Performance - Strategy's core software business is experiencing minimal growth, primarily generating cash to fund Bitcoin purchases, while also increasing debt and issuing shares [5]. - MARA holds 44,893 Bitcoins valued at $4.3 billion, representing 72% of its enterprise value of $6 billion [7]. Group 3: Competitive Advantages - Strategy has a key advantage as it does not incur energy costs to acquire Bitcoin, converting cash from its software business and financing activities into Bitcoin [8]. - MARA faces rising energy costs and increased operating expenses due to its mining operations, which will be exacerbated by the Bitcoin halving events [9]. Group 4: Investment Outlook - If Bitcoin's price is expected to rise, Strategy is viewed as a more favorable investment compared to MARA, which requires declining energy costs and economies of scale to remain competitive [11].

Core Viewpoint - Marathon Digital Holdings, Inc. (MARA) has experienced a 15% decline in stock price over the past three months, contrasting with a 29% rally in the bitcoin-mining industry, indicating potential challenges for the company [1] Company Performance - MARA's competitors, such as Riot Platforms, Inc. (RIOT) and HuT 8 Corp. (HUT), have shown varying performance, with HUT dropping 19% during the same period [1] - The company is currently assessing whether its stock levels present an attractive entry point for investors [2] Market Sentiment - The recent election victory of Donald Trump is believed to potentially boost the crypto market and MARA, driven by optimism regarding pro-digital asset policies [3] - Trump's previous support for deregulation in financial markets has raised hopes for a more favorable regulatory environment for cryptocurrency companies [4] Operational Expansion - MARA has increased its interconnect-approved capacity by 372 MW across three Ohio data centers, aiming for sustained mining expansion [5] - The company acquired facilities at a cost of $270,000 per MW, significantly lower than the industry average of $900,000 to $1.5 million per MW, enhancing its operational efficiency [5] - A new greenfield facility in Ohio is expected to add 150 MW of capacity, further supporting growth and reducing reliance on third-party providers [6] Strategic Approach - MARA employs a dual strategy in Bitcoin mining, focusing on revenue generation while accumulating strategic assets [9] - The company retains a significant portion of mined Bitcoin, positioning itself for potential price appreciation [10] Financial Position - MARA maintains a strong liquidity position with a current ratio of 4, well above the industry average of 2.21, indicating good capability to meet obligations [11] - The Zacks Consensus Estimate projects MARA's 2024 revenues at $633 million, reflecting a 63.4% increase year-over-year, with a further 50% growth expected in 2025 [13] Profitability Outlook - Despite strong revenue growth prospects, MARA is expected to report a loss of 24 cents per share in 2024, compared to earnings of 17 cents in 2023, indicating profitability challenges [14] - Losses are projected to increase to around 56 cents per share in 2025, suggesting ongoing pressure on the bottom line [14] Investment Strategy - MARA's strategic expansion and potential for a crypto-friendly regulatory environment may provide a favorable backdrop for long-term growth [17] - The company's balanced approach of immediate income generation and strategic asset accumulation, along with strong liquidity, suggests a cautious hold for investors while awaiting operational improvements [17]

Company Performance - Marathon Digital Holdings, Inc. closed at $16.24, reflecting a +1.37% change from the previous day, outperforming the S&P 500 which fell by 0.27% [1] - Over the past month, shares of the company have decreased by 7.72%, while the Business Services sector gained 13.4% and the S&P 500 increased by 4.27% [1] Earnings Projections - The upcoming EPS for Marathon Digital Holdings, Inc. is projected at -$0.32, indicating a significant 1500% decline compared to the same quarter last year [2] - The Zacks Consensus Estimate for revenue is expected to be $188.07 million, representing a 19.97% increase from the previous year [2] Analyst Estimates - Recent modifications to analyst estimates for Marathon Digital Holdings, Inc. are crucial as they reflect changing near-term business trends, with positive changes indicating analyst optimism [3] - The Zacks Rank system, which incorporates these estimate changes, provides actionable ratings, with stocks rated 1 delivering an average annual return of +25% since 1988 [4][5] Industry Context - The Technology Services industry, part of the Business Services sector, currently holds a Zacks Industry Rank of 82, placing it in the top 33% of over 250 industries [6] - The Zacks Industry Rank measures the strength of industry groups, with the top 50% rated industries outperforming the bottom half by a factor of 2 to 1 [6]

Core Points - MARA Holdings, Inc. will hold a webcast and conference call on February 26, 2025, at 5:00 p.m. ET to discuss its financial results for Q4 and the fiscal year ended December 31, 2024 [1] - Financial results will be published in a shareholder letter prior to the call and will be available on the investor relations section of the company's website [1] - Verified retail and institutional shareholders can submit and upvote questions ahead of the earnings call, with the Q&A platform opening on February 19 and closing on February 25 [3] Company Overview - MARA is a global leader in digital asset compute, focusing on developing and deploying innovative technologies to support energy transformation and sustainability [5] - The company converts clean, stranded, or underutilized energy into economic value while securing the world's blockchain ledger [5]

Core Points - MARA Holdings, Inc. has postponed its Special Meeting of Stockholders to February 19, 2025, to allow for broader participation [1][2] - The record date for the Special Meeting remains January 17, 2025, and stockholders who have already voted do not need to take further action [1][2] - The Company's Board of Directors recommends voting FOR the proposals in the proxy statement [2] Company Overview - MARA is a global leader in digital asset compute, focusing on innovative technologies to support energy transformation and sustainability [4] - The company converts clean, stranded, or underutilized energy into economic value, securing a prominent blockchain ledger [4]

Core Insights - The company reported a 12% month-over-month decline in blocks won in January 2025, totaling 218 blocks compared to 249 in December 2024 [1][2][4] - The total Bitcoin (BTC) produced in January was 750 BTC, reflecting a 13% decrease from 865 BTC in the previous month [4][6] - The company increased its BTC holdings to 45,659 BTC, indicating a strategic accumulation of assets [1] Operational Highlights - The average BTC produced per day decreased by 13%, from 27.9 BTC in December to 24.2 BTC in January [4] - The energized hash rate remained stable at 53.2 EH/s, with no new miners brought online during January [4][6] - The share of available miner rewards dropped to 5.1% from 5.9%, while transaction fees as a percentage of total rewards decreased from 2.7% to 1.6% [4][6] Strategic Focus - The company is focused on optimizing its mining fleet and implementing strategic enhancements to improve long-term efficiency and performance [3][4] - Successful conversion of over 230 containers to immersion cooling at the Texas site has led to high uptime and increased hashrate without additional power consumption [3] - Plans for 2025 include expanding mining capacity and prioritizing near net zero cost energy solutions [4]