Marathon(MARA)2024-02-29 02:38Financial Data and Key Metrics Changes - The company reported a net income attributable to common stockholders of approximately 0.62 per diluted share in Q4 2023, compared to a net loss of approximately 3.13 per share in the prior year quarter [8] - For the full year, net income was 1.06 per diluted share, compared to a net loss of 6.12 per share in the prior year [8] - Revenues for the full year reached approximately 118 million in the prior year, driven by a 210% increase in Bitcoin production and a 2% increase in the average price of Bitcoin [9] - Adjusted EBITDA improved to 374 million in the prior year period, and for the full year, adjusted EBITDA improved to 543 million in 2022 [31] Business Line Data and Key Metrics Changes - The company produced a record amount of Bitcoin in 2023, increasing production by 210% year-over-year from 4,144 Bitcoin in 2022 to 12,852 Bitcoin in 2023 [6] - In Q4 2023, the company produced 4,242 Bitcoin, more than the total production of 2022 and more than three of its top competitors combined [79] Market Data and Key Metrics Changes - The total Bitcoin network's hash rate doubled from 253 exahash to 509 exahash in 2023, effectively reducing the reward for mining a block by half [6] - The company increased its hash rate by 253% last year, growing from 7 exahash to 24.7 exahash, surpassing its target of 23 exahash [24] Company Strategy and Development Direction - The company aims to optimize costs to mine and focus on sustainable energy sources, with plans for both organic and inorganic growth domestically and internationally [16] - The company is exploring projects that involve using heat from mining systems for industrial processes, which could provide additional revenue streams [52] - The company has a goal to grow its operational hash rate to approximately 35 exahash to 37 exahash in 2024 and to 50 exahash by the end of 2025 [89] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's ability to navigate potential market fluctuations, emphasizing a strong balance sheet with 83 million, which were used to fund operating expenses [85] Q&A Session Summary Question: How does the company address concerns about handling market fluctuations? - Management highlighted their strong balance sheet and strategies to build resiliency, including diversifying operations and investing in technology [96] Question: Why did the company use equity to purchase Bitcoin after stating it would only use equity for growth? - Management clarified that they have been opportunistic in their approach to utilize cash for strategic investments when market conditions allow [42] Question: What is the plan post-halving to ensure revenue stability? - Management indicated that they are focused on growing their hash rate and optimizing existing operations to maintain profitability [64] Question: How does the company plan to compete with competitors based on hashing power metrics? - Management acknowledged the need to improve efficiency and operational control, especially with the recent acquisitions of data centers [73]