Marathon Digital, the company specializing in Bitcoin mining, saw a significant decline early Thursday even after the recent rally of the digital currency resulted in the company turning a profit.
Earnings and Revenue Report
Marathon reported earnings per share of $0.66 in the fourth quarter, a substantial improvement from the $3.13 loss reported a year earlier. The revenue also exceeded expectations set by Wall Street analysts.
Analysts’ Positive Outlook
J.P. Morgan analysts, including Reginald L. Smith, expressed their optimism about Marathon’s long-term vision and strategy in a recent note. They highlighted the company’s strong positioning to drive significant hashrate growth in ’24 and beyond.
Market Performance
Despite the positive financial results, the stock experienced a 9.4% drop in premarket trading. This decline came after a remarkable period where Marathon shares had surged nearly 100% over the past 12 months and 32% since the beginning of the year.
Bitcoin’s Influence
The recent surge in Bitcoin, crossing the $60,000 mark for the first time since late 2021, has been a contributing factor to Marathon’s performance. Factors such as the introduction of Bitcoin exchange-traded funds and upcoming changes in miner compensation that will slow down the digital asset’s supply growth have also played a role.
Crypto Market Trends
In addition to Marathon’s performance, other crypto-related stocks have been on an upward trend. Coinbase shares reached a two-year high, experiencing a 2% increase in premarket trading. MicroStrategy saw a 5% increase, while Hut 8 added 3.7%.