With the recent surge in Bitcoin prices, the past layout of Bitcoin mining companies has also been examined by the market. Mining giant Marathon Digital released its fourth quarter and annual revenue report for 2023 yesterday (28th). Marathon CEO Fred Thiel stated in the report that 2023 was a record-breaking year for the company.
Marathon Digital, a major Bitcoin mining company in the United States, announced its fourth quarter and annual revenue report for 2023 on February 28th, with impressive results. The report revealed that Marathon’s annual revenue in 2023 reached $387.5 million, an increase of 229% compared to 2022, showing a remarkable growth rate.
In the fourth quarter, Marathon also showed outstanding performance in revenue, reaching $156.8 million, a significant increase of 452% compared to the same period last year’s $28.4 million. This figure also surpassed the market analysts’ original estimate of $148.8 million.
CEO Fred Thiel stated in the report that 2023 was a record-breaking year for the company. Marathon Digital achieved its main goal of providing power and optimizing performance for the previously purchased mining machines during this year, which played a crucial role in revenue growth. The report pointed out that Bitcoin production increased by 172% annually, and the average price of Bitcoin also doubled during the same period. These factors collectively drove the substantial growth in the company’s revenue.
On the other hand, the report pointed out that the company’s adjusted EBITDA (Earnings Before Interest, Taxes, Depreciation, and Amortization) changed significantly from a loss of $374 million in the fourth quarter of 2022 to a positive $260 million in the fourth quarter of 2023. This change not only reflects Marathon Digital’s improved profitability but also demonstrates the enhancement of its business operational efficiency.
Marathon Digital achieved significant accomplishments in 2023, with a record-breaking Bitcoin production of 12,852 BTC. At the same time, the company’s hash rate (the number of hashes processed per second) increased from 7.0 EH/s in the previous year to 24.7 EH/s, a growth rate of 253%. Regarding future prospects, Marathon’s CFO Salman Khan stated:
“Investment in Bitcoin scalability field”
In addition to the growth in its core business, Marathon Digital has recently been actively expanding into the Bitcoin scalability field. According to a blog post released on February 28th, Marathon has started incubating a multi-chain Layer2 network called Anduro. This initiative aims to accelerate the development and popularization of Bitcoin and enhance its influence in the cryptocurrency market.
Anduro is designed to be an application layer that encourages innovation within the Bitcoin ecosystem by supporting the creation of multiple side chains. Marathon states that this composable second-layer platform will focus on “systematically integrating decentralized governance” and aims to become a developer-centric Bitcoin scalability solution.
In addition to Anduro, Marathon is currently also committed to the development of the first two side chains on Cooperative and Alys. Coordination will provide an economically efficient UTXO stack for the Ordinals community, while Alys is an Ethereum-compatible side chain primarily used for tokenization of institutional assets.