Marathon(US:MARA)2025-05-08 22:00Financial Data and Key Metrics Changes - Revenues increased by 30% to $213.9 million from $165.2 million in Q1 2024, driven by a 77% increase in the average price of Bitcoin [16][17] - The company reported a net loss of $533.4 million or negative $1.55 per diluted share, compared to a net income of $337.2 million or $1.26 per diluted share in Q1 2024 [17][18] - Adjusted EBITDA decreased to a loss of $483.6 million in Q1 2025 from a loss of $542.1 million in Q1 2024 [18] Business Line Data and Key Metrics Changes - The energized hash rate increased by 95% to 54.3 Exahash per second in Q1 2025 from 27.8 Exahash per second in Q1 2024 [13] - The purchase energy cost per Bitcoin was $35,728, with a daily cost per petahash improving by 25% year over year [9][18] Market Data and Key Metrics Changes - The average price of Bitcoin was 12% lower as of March 31, 2025, compared to December 31, 2024, resulting in an unrealized fair market value loss of $510.2 million in Q1 2025 [17] - The company currently holds over 48,000 Bitcoin on its balance sheet, with a 52% increase in Bitcoin price since the full HODL announcement in July 2024 [13][14] Company Strategy and Development Direction - The company is transforming into a vertically integrated digital energy and infrastructure company, focusing on long-term low-cost energy solutions and efficient capital deployment [6][10] - Strategic growth priorities include advancing research and development of digital energy technologies and establishing partnerships with governments and global energy corporations [8][10] Management's Comments on Operating Environment and Future Outlook - Management noted that despite a challenging quarter due to declining Bitcoin prices and increased network difficulty, they expect a substantial recovery in Bitcoin prices to positively impact Q2 results [17][18] - The company believes it is well-positioned to reduce operating costs over time as it expands its own initiatives and focuses on low-cost energy sources [18][19] Other Important Information - The company completed the construction of a 200 megawatt data center in Ohio, with 100 megawatts now online and over 12,000 miners installed [9] - The company is investing in and developing digital energy technologies to improve operational efficiency and diversify revenue streams [10][11] Q&A Session Summary Question: Market disconnect between fundamentals and share performance - Management indicated that the market values the company for its Bitcoin holdings but does not give credit for its mining operations, which they believe undervalues the company [21][22] Question: Off-grid expansion strategy and partnerships - Management discussed the importance of partnering with energy companies to monetize underutilized energy and emphasized a mix of energy sources for future growth [26][31] Question: Hash cost and operational efficiencies - Management confirmed that hash costs have been reduced and expect further declines due to ongoing projects and operational efficiencies [35][36] Question: Impact of tariffs on procuring mining rigs - Management noted that they are working to minimize the impact of tariffs through their supply chain and manufacturing strategies [62][63] Question: Full HODL strategy and future plans - Management reiterated their commitment to the full HODL strategy, emphasizing the long-term value creation for shareholders [70][72]