MARA (MARA) Q3 2024 earnings summary

Executive summary

• Announced and completed acquisitions and development of Ohio data centers, adding 372 MW of capacity, including a 222 MW site and 150 MW greenfield project, increasing owned and operated capacity by over 70% year-over-year.

• Energized hash rate increased 93% year-over-year to 36.9 EH/s in Q3 2024, with a sequential rise to 40.2 EH/s in October.

• Ended Q3 2024 with 26,747 BTC on the balance sheet, up 45% from Q2, valued at $1.69B, and improved BTC/share yield by 29%.

• Strategic focus on self-mining, cost leadership, technology innovation (including 2PIC immersion cooling), and policy engagement.

• Launched a 25 MW micro data center using flared gas and secured first external orders for immersion cooling tanks.

Financial highlights

• Q3 2024 revenue rose 35% year-over-year to $131.6M, driven by higher bitcoin prices and block space.

• Net loss widened to $124.8M in Q3 2024, compared to $0.4M in Q3 2023, due to higher costs and depreciation.

• Adjusted EBITDA turned positive at $21.8M, a $43.1M improvement from the prior year.

• Cash and BTC holdings grew to $1.9B at quarter end.

• Daily cost per petahash improved 18% year-over-year to $37.1/PH.

Outlook and guidance

• Targeting 50 EH/s hash rate by year-end 2024, with further cost reductions expected as new Ohio sites come online.

• Efficiency improvements underway, targeting sub-22.7 J/TH as S21 Pros and immersion cooling are deployed.

• Management expects sufficient liquidity for the next 12 months, supported by cash, digital assets, and capital markets access.

• Recently secured a $200M line of credit collateralized by bitcoin holdings, fully utilized as of October 17, 2024.

• Ongoing focus on operational efficiency and cost reduction as mining scales.