TLDR
MARA Holdings reported record Q4 2024 revenue of $214.4 million, up 37% year-over-year despite reduced Bitcoin production following the halving event
Net income grew 248% to $528.3 million, with earnings per share of $1.24 beating analyst expectations of a -$0.32 loss
MARA’s hashrate increased 115% to 53.2 EH/s while mining 2,492 BTC (down 27% YoY) but increasing blocks won by 25%
Energy costs rose 70% to $127.4 million with direct energy cost per Bitcoin increasing to $28,801
MARA holds 44,893 BTC worth $4.6 billion and didn’t sell any Bitcoin during Q4 2024
Bitcoin mining company MARA Holdings has posted record revenue and earnings for the fourth quarter of 2024, beating analyst expectations despite the challenges posed by last year’s Bitcoin halving event.
The company reported a 37% increase in revenue, reaching $214.4 million compared to $156.8 million in the same period of 2023.
MARA’s net income for the quarter grew by an impressive 248%, totaling $528.3 million. This is a major jump from the $151.8 million reported in Q4 2023. The growth comes despite the impact of the Bitcoin halving that occurred in April 2024.
The Bitcoin halving event reduced the reward miners receive for solving computational puzzles by 50%. Rewards dropped from 6.250 BTC to just 3.125 BTC per block. This industry-wide change happens approximately every four years.
Bitcoin Halving
As a result of the halving, MARA mined 2,492 BTC in Q4 2024. This represents a 27% decrease from the 3,490 BTC produced in the same quarter of 2023. The reduction in mining rewards presented a major challenge for all Bitcoin miners.
Despite producing fewer bitcoins, MARA managed to increase its total blocks won by 25%. The company achieved 703 blocks in Q4 2024 compared to 562 in Q4 2023. This growth in block production helped offset some of the impact from reduced rewards.
The company’s earnings per share far exceeded expectations. MARA reported $1.24 per share, compared to analysts’ forecast of a $0.32 loss per share. This represents an earnings surprise of 487.50%, according to Zacks Equity Research.
Following the earnings announcement, MARA’s stock climbed by 7.41% to $13.38 in after-hours trading. This positive market reaction came despite the stock having lost about 26% since the beginning of the year, compared to the S&P 500’s gain of 1.3%.
MARA’s hashrate grew substantially during the quarter. It increased by 115% to reach 53.2 EH/s, up from 24.7 EH/s in Q4 2023. This growth was driven by strategic acquisitions and energy capacity expansion.
The increase in hashrate helped MARA maintain competitiveness in an increasingly difficult mining environment. Hashrate measures the computational power used in mining and determines the rate of transaction processing and network security.
Energy costs represented a growing expense for the company. MARA’s energy and hosting costs rose sharply by 70%, totaling $127.4 million in Q4 2024. This compares to $75.1 million in Q4 2023.
The direct energy cost per Bitcoin for MARA’s owned mining sites increased to $28,801. This is up from $23,000 in the previous year. The rising costs reflect the challenges of scaling operations while maintaining profitability.
According to CEO Fred Thiel, the company is focused on being the lowest-cost producer in the industry.
“Our focus is not just on Bitcoin mining but on being the lowest-cost producer in an environment where efficiency and adaptability are paramount,” Thiel wrote in the annual shareholder letter.
MARA reported a 62% BTC yield per share for 2024. The company did not sell any Bitcoin out of its total holding of 44,893 BTC, which is worth approximately $4.6 billion. This makes MARA the second-largest corporate holder of Bitcoin.
While MARA posted strong results, other miners in the industry have struggled. Singapore-based miner Bitdeer disclosed a fourth-quarter loss of $532 million. Despite efforts to develop proprietary mining chips, Bitdeer’s stock dropped 20% following their announcement.
According to JP Morgan, publicly traded crypto firms including Bitcoin miners like MARA outpaced the broader crypto market in January. These firms saw their overall market cap expand by 14%, reaching a total valuation of $108 billion. The crypto market itself ended January with a market cap of around $3.2 trillion, achieving an 8% expansion.
