Marathon(MARA)2024-11-13 01:13Financial Data and Key Metrics Changes - The energized hash rate increased by 93% to 36.9 exahash per second in Q3 2024 compared to Q3 2023, with over 40 exahash already achieved [56] - Revenues increased by 35% compared to the same quarter last year, despite challenges from Bitcoin price fluctuations and global hash rate increases [57] - Cash cost of revenue decreased by 18% from 37.1 in Q3 2024, reflecting the strategy towards near-zero energy costs [60][61] Business Line Data and Key Metrics Changes - The acquisition of data centers is expected to increase total owned and operated compute capacity by over 70%, with a total nameplate capacity now just under 1.5 gigawatts [13][14] - The company secured approximately 1 gigawatt of nameplate capacity through acquisitions and greenfield site developments in 2024 [14] Market Data and Key Metrics Changes - The company has begun developing a 150-megawatt operation in Findlay, Ohio, which already has 30 megawatts of capacity [9] - The company is diversifying its portfolio across multiple jurisdictions to ensure no single ISO contains more than 50% of its owned and operated capacity [10] Company Strategy and Development Direction - The company aims to position itself as one of the most cost-effective operators in the industry, focusing on lowering operational costs through owned and operated energy and data centers [10][19] - The strategy includes building more owned and operated generation capacity and partnering with AI companies for energy management [18][29] Management's Comments on Operating Environment and Future Outlook - Management believes that the period of low-cost growth is likely coming to an end, and companies will need to compete for capacity in a different way [26] - The company is focused on working with government branches to educate them on the benefits of Bitcoin mining for energy grid management [70] Other Important Information - The company holds over 27,000 Bitcoin, valued at approximately $2.5 billion, which provides financial flexibility and options for generating yield [62][24] - The company has a strong balance sheet, one of the strongest in the sector, which positions it well for future opportunities [64] Q&A Session Summary Question: How does the recent acquisition fit into MARA's strategy to drive energy costs to near zero? - The acquisition allows for significant operational cost reductions and aligns with the goal of lowering operational costs over time [16] Question: What flexibility does MARA have in using power from the Ohio sites? - The company can leverage power trading and hedges, providing flexibility in managing power costs [20] Question: Can you discuss MARA's HODL strategy regarding Bitcoin? - The company has purchased Bitcoin opportunistically, resulting in significant returns for shareholders, and plans to continue a hybrid strategy of buying and mining Bitcoin [22][23] Question: What are the highlights of MARA's overall financial performance? - The energized hash rate and revenues have significantly increased, while costs have decreased, demonstrating effective management and strategic growth [56][59] Question: How does MARA plan to capitalize on the experience of new Board members? - The company is focused on delivering high-value solutions and will leverage the expertise of new Board members to enhance operations [44][48]