Sentiment Analysis of the earnings transcript to help figure out if there are any bullish or bearish sentiments that could be gathered from it. We're doing ML and AI based analysis on the earnings call to get some more insights.
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| Statement |
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| We had an excellent fourth-quarter to cap off what was an incredibly successful year for Marathon |
| In December, we averaged 90% capacity across all sites and at the same time, we benefited from a huge surge in transaction fees on the Bitcoin network |
| Regardless, we're confident that the best and most exciting times for our operation are still to come |
| When we're driving positioned from that perspective, it also provides us a great opportunity for investors to ride the price as Bitcoin price appreciates from here |
| Our HODL position and cash provides us a great mechanism to fight any downturns as the Bitcoin price, different cycles, it goes through, the halving it goes through, the upcycle, downcycle |
| During the year, we improved our fleets efficiency 21% from 30.9 joules per terahash to 24.5 joules per terahash, which means that on top of our scale and our diversified operations, we have one of the most efficient fleet in the industry |
| We produced record revenues, net income and adjusted EBITDA |
| While site performance will fluctuate with seasonality and maintenance, the significant improvements we made underscore the positive impact that our team and our processes can have in our operation, a testament that we are not just effective capital allocators, but excellent operators as well |
| And with the transaction fees being at a record high this quarter, that certainly helped us as well from a unit cost perspective |
| We have one of the strongest balance sheets in the sector with $1 billion in cash and Bitcoin, which gives us the strength to survive whatever comes our way |
| Given our positive financial results and our robust balance sheet, we believe Marathon is well-positioned to achieve our 2024 growth targets and to capitalize on any opportunities that present themselves around the upcoming halving |
| At the same time, we improved our operational efficiency, improving our fleet efficiency 21% |
| Given Bitcoins historical volatility, we believe this strategy is integral to improving the resilience of our organization, providing downside risk protection during volatile market conditions and maximizing our Bitcoin valuation potential |
| Production improved throughout the year, but the fourth quarter really stood out operationally and financially |
| And we expect to see that number grow considerably to the point where the vast majority of our hash rate is owned and operated, which means that we have a significant opportunity for cost reductions just through the operating line, which we believe will put us on par, if not better in both of those players |
| Fourth quarter revenues were a record $157 million, significantly higher than prior year revenues of $28 million and were driven by a 172% increase in Bitcoin production coupled with 101% higher average price of Bitcoin |
| On the capital side, the public miners that are ASR eligible, able to raise money through ATMs, have a significant advantage over everybody else |
| We believe the increased value of combined cash and Bitcoin, along with reduced debt is prudent risk management and source of strength for the company's balance sheet as we enter a potentially turbulent time for the industry |
| And in the current price environment, we expect to be profitable in -- with the assumption that the competition will -- certain of those machines will go down and it will provide us opportunity to grow retail value for our stockholders |
| And we entered 2024, with a strong balance sheet that has us well-positioned for the upcoming halving and beyond |
| The combined cash and cash equivalents and Bitcoin on our balance sheet along with reduced debt and access to at the market facility provides us ample amount of liquidity and optionality to strategically evaluate opportunities as we approach halving |
| But given the scale and diversity of applications, we believe the market opportunity here is substantial and the prospects are incredibly exciting |
| It also demonstrates our ability to replicate the joint-venture model that we developed in Abu Dhabi, which allows us to partner with regional experts to quickly and effectively expand our diversified portfolio of Bitcoin mining assets |
| The drivers of the adjusted EBITDA improvement in both periods include total margin improvement, excluding depreciation and amortization, gains on digital assets and the absence of impairment charges |
| For the full year adjusted EBITDA improved to $420 million from a loss of $543 million in 2022 |
| In Q4 of 2023, adjusted EBITDA improved to $260 million, versus a $374 million loss in the prior year period |
| And as far as we know, Marathon is the only minor capable of offering a direct submission in service and benefiting from the potential increase in transaction fees, because we're the only minor that operates as a mining pool |
| We believe Bitcoin mining can positively change the world and that starts with the local communities in which we operate, where our operations create highly-skilled jobs and economic contributions for the people in those communities |
| For the full year, we recorded revenues of approximately $388 million, also a significant improvement compared to $118 million in the prior year |
| Due to the impairment charges of $572 million in 2022, we had a gain of over $700 million, which had a positive impact to earnings when compared to last year |
| Statement |
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| A lot of critics are worried that if the crypto market fluctuates, your company won't be able to handle the fluctuation |
| And the smaller miners are challenged by a couple of things |
| I'm more concerned about the timing |
| What is doing it, what is creating a problem is the ETFs as they continue to vacuum up Bitcoin, and I don't really see it abating |
| Those of you who have been tracking our pool will know that Q4's record performance was followed by temporary operational challenges in North Dakota and Texas, started in mid-January and have now been resolved |
| The big challenge today is this is a big boy capital game |
| Which you are not going to see based on the announcements of ourselves and our peers is the rest of the world slowdown |
| And the drop in the block reward forces the inefficient operators out |
| And we've never been more confident in our future |
| That being said, publicly traded miners' market share of global hash rate is declining |
| As the company not early adopted the new FASB fair-value accounting rules, our net income attributable to common stockholders for the fourth quarter of 2023 would have been a net loss of $5 million or loss of $0.02 per diluted share |
| But if you're a small-scale miner, that's a lot more difficult |
| The other thing a small-scale miner has the challenge of doing is getting aside, putting deposits down for PPAs, and getting -- having the capital to buy miners |
| The company's non-GAAP total margin excluding depreciation and amortization was $82 million this quarter compared to a loss of $1 million in the same quarter last year |
| We can actually, in the event of really bad pricing in the marketplace scale it back |
| And there were some winter events in Q4 that can cause -- had an impact there |
| And at that point, margin compression will happen in the business |
| There is the bucket of, I'm going to go buy things like Granbury and Kearney, where there is excess capacity with an ability to grow |
| These sites operated by Applied Digital had unplanned outages due to transformer and transmission line maintenance |
| It may not grow, but I don't see that abating, based on the conversations I'm having with institutional investors certainly is that the available supply of Bitcoin in the market is going to start drying up |
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