• Marathon Digital Holdings reported a 58% year-on-year decrease in revenue for the fourth quarter of 2022 to $28.4 million.
• The company’s annual production increased 30% to 4,144 in 2022.
• Marathon terminated its credit facilities with Silvergate Bank, releasing 3,132 Bitcoin held as collateral valued at over $68 million at the time.
Marathon Digital Holdings Reports Fourth Quarter Results
Marathon Digital Holdings announced that its revenue for the fourth quarter of 2022 fell 58% year on year to $28.4 million. Annual production increased by 30% to 4,144 in 2022.
Impairment Charge Impacts Results
The results were impacted by a $332.9 million fourth-quarter impairment charge related to the carrying value of mining rigs and advance payments to vendors, in addition to the decline of $317.6 million in the carrying value of its digital assets. This resulted in a full-year net loss for Marathon of $686.7 million compared to a loss of only $37.1 million during 2021.
Stock Drops Following News
Following news of the results being released, Marathon shares declined 0.13%, trading at around 7 dollars per share at press time according to Yahoo Finance data.
Credit Facilities with Silvergate Terminated
In February 2023, Marathon terminated its credit facilities with Silvergate Bank which resulted in the release of 3,132 bitcoin that were previously held as collateral and was valued at over $68M at the time which would result in a reduction of debt by 50M and an annual borrowing cost reduction by 5M for Marathon Digital Holdings according to their statement released last month when news broke about Silvergate’s closure operations spread out on 8th March this year .
These results reflect a significant drop from previous records set by Marathons Digital Holdings However due To termination Of credit facility With silver gate bank freeing up 3132 bitcoins ,the company is looking forward towards alternative banking relationships as stated by CEO Fred Thiel last month .