We are convinced that anybody buying Marathon Digital (MARA) stock has never read a financial statement before.
MARA's enterprise value at $15.56 per share is $3.212 billion.
In June, MARA mined 979 Bitcoin. At Bitcoin's current price of $30,589 they are generating $29.947 million per month in revenue or $359.364 million annualized.
If MARA had no electricity/hosting costs or operating expenses, and if the Bitcoin hashrate wasn't always going straight up, and if there wasn't any Bitcoin halving events in the future that will cut their block rewards in half, and if Bitcoin was to maintain its current price for the next nine years... MARA might have the ability to generate a positive return for investors after a period of nine years, but unfortunately... none of this is true!
In 1Q 2023, MARA generated revenue of $51.132 million down 1.14% year-over-year from $51.723 million in 1Q 2022.
As MARA's 1Q 2023 revenue declined by 1.14% year-over-year, MARA's 1Q 2023 cost of revenue nearly doubled year-over-year to $51.11 million vs. $26.399 million in 1Q 2022. This is mostly due to MARA's 1Q 2023 electricity/hosting costs nearly tripling year-over-year to $33.377 million vs. $12.522 million in 1Q 2022.
MARA's 1Q 2023 gross profit declined by 99.91% year-over-year to $22,000 vs. $25.324 million in 1Q 2022. On a trailing twelve-month basis, MARA has generated a negative gross profit BEFORE operating expenses of -$58.98 million, which has led to severe dilution!
MARA's average shares outstanding in 1Q 2023 were diluted by 54.4% year-over-year compared to 1Q 2022! Since year-end 2019, MARA's shares outstanding have been diluted by 1,910%!
MARA shareholders are about to vote on increasing its authorized shares from 200 million up to 500 million!