2024-11-13T10:00:20.920+02:00
Wednesday, 13/11/2024 | 08:00 GMT by
Damian Chmiel
- Three major BTC mining companies – Marathon Digital, TeraWulf, and HIVE Digital – reported net losses in Q3 2024.
- Although all firms continued to expand their mining capacity, increased operational costs are killing the profits.
Three major
publicly listed Bitcoin miners from Wall Street reported net losses in their
third-quarter results, despite significant revenue growth and operational
expansions amid volatile cryptocurrency market conditions.
Wall Street Bitcoin Miners
Report Net Losses in Q3 Despite Revenue Growth
Fred Thiel, CEO, MARA, Source: LinkedIn
Marathon
Digital Holdings (NASDAQ: MARA), the largest public Bitcoin miner by market
capitalization, posted a substantial net loss of $124.8 million in Q3 2024,
despite generating revenue of $131.6 million. The company’s operational
expenses increased by $40 million during the quarter, overshadowing its 34.5%
year-over-year revenue growth.
In October
2024, MARA secured a $200 million line of credit, collateralized by a portion
of its cryptocurrency holdings. This move underscores the increasing adoption
of cryptocurrency-backed financing among corporations.
TeraWulf
Inc. (NASDAQ: WULF) reported a net loss of $22.7 million, widening from $19.1
million in the same period last year. While the company achieved a 42.8%
revenue increase to $27.1 million, its Bitcoin production decreased by 43.4% to
555 BTC, primarily due to increased network difficulty and the Bitcoin halving
event in April.
Sean Farrell, Senior Vice President of Operations at TeraWulf
“Power cost
per bitcoin self-mined increased year-over-year, to $30,448 per bitcoin in Q3
2024 from $9,322 per bitcoin in Q3 2023, due to an approximate doubling in
network difficulty and the bitcoin reward halving in April 2024,” TeraWulf commented in a statement.
HIVE
Digital Technologies (NASDAQ: HIVE) recorded a net loss before tax of $7.3
million, though this marked an improvement from the $22.9 million loss in the
previous year. The company’s revenue reached $22.6 million, with significant
contributions from its diversified high-performance computing services.
Frank Holmes, Executive Chairman of HIVE
“As Bitcoin
reaches new all-time highs, HIVE is positioned to capitalize on the momentum
for green energy and digital assets worldwide,” commented Frank Holmes, HIVE’s
Executive Chairman. “With recent regulatory developments following the U.S.
election, the environment for digital assets and Bitcoin mining is more
favorable than ever.”
Hasrate Goes Up
Despite the
losses, all three companies reported significant operational expansions.
Marathon increased its hashrate to 40.2 EH/s, while TeraWulf doubled its
capacity to 10.0 EH/s, and HIVE reached 5.6 EH/s.
“HIVE’s
Bitcoin mining hashrate grew by 14%, from 4.9 EH/s in June 2024 to 5.6 EH/s in
September 2024, supporting HIVE’s goal of reaching 12.5 EH/s by late 2025,”
said HIVE.
In the meantime,
another publicly listed Bitcoin miner from Wall Street, Hut 8, announced its
plans to achieve 6& hashrate growth to 9.3 EH/s by 2025. To achieve this,
it has purchased 31,145 BITMAIN Antminer S21+ units as part of its initial ASIC
fleet upgrade.
“Cost of
revenue (exclusive of depreciation) in the third quarter of 2024 increased
77.3% to $14.7 million compared to $8.3 million in the third quarter of 2023,”
TeraWulf commented. It was “2023, primarily due to an approximate doubling in
network difficulty and the bitcoin reward halving in April 2024, partially
offset by an 62.0% increase in average operating hash rate and 117.3% increase
in average value per bitcoin self-mined year-over-year.”
Although the
biggest publicly listed miners reported higher production in Q3 and last month,
the overall mining revenues were falling for fourth straight month. The daily
block reward gross profit declined by 2%, reaching its lowest level in recent
records. Miners earned an average of $41,800 per EH/s from daily block rewards,
representing a 1% decrease compared to September.
Three major
publicly listed Bitcoin miners from Wall Street reported net losses in their
third-quarter results, despite significant revenue growth and operational
expansions amid volatile cryptocurrency market conditions.
Wall Street Bitcoin Miners
Report Net Losses in Q3 Despite Revenue Growth
Fred Thiel, CEO, MARA, Source: LinkedIn
Marathon
Digital Holdings (NASDAQ: MARA), the largest public Bitcoin miner by market
capitalization, posted a substantial net loss of $124.8 million in Q3 2024,
despite generating revenue of $131.6 million. The company’s operational
expenses increased by $40 million during the quarter, overshadowing its 34.5%
year-over-year revenue growth.
In October
2024, MARA secured a $200 million line of credit, collateralized by a portion
of its cryptocurrency holdings.
