Marathon(MARA)2024-05-10 03:56Financial Data and Key Metrics Changes - The first quarter of 2024 saw a record revenue increase of 223% to 51 million in Q1 2023 [23] - Net income rose to 1.26 per diluted share, a 184% increase from 0.72 per diluted share in the same quarter last year [51] - Adjusted EBITDA increased 266% to 145 million in the prior year period [59] - The average price of Bitcoin mined was 126% higher compared to the previous year, contributing to a 21 million during the quarter, attributed to the transition of existing hosted customers [53] - Non-GAAP cost of revenue without depreciation improved by 16% from 45.2 per petahash per day in Q1 2024 [55] Market Data and Key Metrics Changes - The global hash rate increased by approximately 86% since Q1 2023, leading to higher costs per coin due to operational issues at third-party hosted sites [26] - Total cost of revenues rose to 151 million last year, with depreciation and amortization increasing to 78 million [27] Company Strategy and Development Direction - The company transitioned from an asset-light Bitcoin miner to owning and operating its own mining sites, effectively doubling its portfolio to 1.1 gigawatts of capacity [41] - The launch of new products and services, including Slipstream, aims to diversify revenue streams and enhance operational efficiency [12][14] - The company plans to reorganize into three business units: utility-scale mining, technological innovations, and energy harvesting [71] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in overcoming operational challenges and achieving record financial results despite equipment failures and weather-related issues [21][22] - The company aims to reach a target of 50 exahash by the end of 2024, with plans for continued growth and expansion into international markets [79][80] - Management highlighted the importance of diversifying revenue streams to mitigate the impact of future Bitcoin halving events [77] Other Important Information - The company was added to the S&P SmallCap 600 Index, marking a significant milestone as the first Bitcoin miner included in the index [62] - As of March 31, 2024, the company held approximately 7,320 Bitcoin with a fair value of 1.2 billion on its balance sheet [60] Q&A Session Summary Question: How is MARA positioned to stay profitable and grow compared to other mining companies post-halving? - Management indicated that by acquiring sites and integrating operations, they have lowered their cost structure by eliminating third-party hosting margins, potentially reducing costs by up to 20% [82] Question: Is MARA looking for mergers or planning to buy other miners in the short term? - Management noted challenges in acquiring miners with older fleets, as it may not be a smart investment due to the age of the equipment [83][84] Question: What is the status of the open ATM and its impact on MARA's stock price? - Management confirmed that they have not accessed the new ATM as of March 31, 2024, but raised about 0.005 and $0.01 per kilowatt hour [127][140]