Marathon Digital Holdings, Inc. reported significant financial developments in its 10-Q filing for the quarter ending September 30, 2024. The company achieved total revenues of $131.6 million for the third quarter, marking a 35% increase from $97.8 million in the same period of 2023. For the nine months ended September 30, 2024, revenues surged to $442.0 million, a 92% increase compared to $230.7 million in the prior year. This growth was primarily driven by a substantial rise in the average price of bitcoin mined, which increased by 120%, despite a decrease in bitcoin production due to the April 2024 halving event.

However, the company faced challenges in profitability. Operating losses for the third quarter reached $172.2 million, compared to a loss of $80.2 million in Q3 2023. For the nine-month period, the operating loss was $34.9 million, a stark contrast to the operating income of $35.8 million reported in the same period last year. Net loss for Q3 2024 was $124.8 million, significantly higher than the $0.4 million loss in Q3 2023. The net income for the nine months ended September 30, 2024, was $12.7 million, down from $109.3 million in the previous year.

The company’s total assets increased to $3.58 billion as of September 30, 2024, up from $1.99 billion at the end of 2023. This growth was attributed to strategic acquisitions, including the purchase of GC Data Center Equity Holdings, LLC and Rattlesnake Den I, LLC, which enhanced operational capacity and efficiency. The total long-term assets rose significantly, while current assets saw a decline, particularly in cash and cash equivalents, which fell to $164.3 million from $357.3 million at the end of 2023.

Marathon Digital also reported a notable increase in general and administrative expenses, which rose to $63.7 million in Q3 2024 from $19.4 million in Q3 2023, largely due to increased headcount and stock-based compensation. The company’s workforce expanded from 48 to approximately 130 employees over the year.

In terms of strategic financial maneuvers, Marathon Digital issued $300 million in convertible senior notes due 2031 and secured a $200 million line of credit, collateralized by its bitcoin holdings. The company also adopted a full "HODL" strategy for its bitcoin, retaining all mined bitcoin and potentially making strategic purchases in the market.

As of September 30, 2024, Marathon Digital held approximately 26,747 bitcoins, valued at around $1.69 billion, reflecting a 95% increase in holdings compared to the previous year. The company continues to navigate market volatility and operational challenges while pursuing growth through strategic acquisitions and enhanced mining capabilities.