Bitcoin Firms MicroStrategy, Block and Marathon Post Mixed Q2 2024 Earnings

Key Takeaways:

• MicroStrategy reports losses but increases Bitcoin holdings to 226,500 BTC.
• Marathon Digital struggles post-halving and sells 51% of mined Bitcoin.
• Block Inc. shows growth with a 9% increase in Bitcoin revenue.

Bitcoin-based companies MicroStrategy, Marathon Digital, and Block have revealed their financial performances and Bitcoin strategies, showcasing different strategies for handling Bitcoin assets and revenue.

The highly anticipated Q2 2024 earnings reports show MicroStrategy and Marathon Digital accounted for losses, while Block recorded outstanding growth in its Bitcoin revenue.

MicroStrategy Buys More Bitcoin Despite Losses, Marathon Digital Struggles Post-Halving

In an August 1 release, Business intelligence company MicroStrategy, known for its massive Bitcoin holdings, reported losses in its Q2 earnings call. 

The company incurred a loss of $5.74 per share on quarterly revenue of $102.6 million, representing a 7% decline year-over-year. 

These figures fell short of analyst expectations, which predicted a loss of $0.78 per share and revenue of $119.3 million. The loss stemmed from a $180.1 million impairment charge on its BTC holdings, compared to $24.1 million a year ago.

Despite this financial setback, MicroStrategy persisted in its aggressive Bitcoin acquisition strategy, purchasing an additional 12,222 Bitcoin for $805 million in Q2. 

This brings its total holdings to 226,500BTC, valued at approximately $14.7 billion. As revealed by MicroStrategy, the stockpile was acquired for $8.5 billion at an average price of $36,821 per Bitcoin.

Similarly, Bitcoin miner Marathon Digital faced a challenging quarter, with its shares falling 8% after filing its Q2 earnings. The company reported revenue of $145.1 million, approximately 9% lower than Wall Street estimates of $157.9 million. 

This shortfall occurred despite a year-on-year revenue increase of 78% from $81.7 million in Q2 2023.

The $MARA Q2 '24 Earnings Call will begin shortly (5PM ET). Listen to the live webcast: https://t.co/fieo9E2pF0 https://t.co/JeJvA1YJUT

— MARA (@MarathonDH) August 1, 2024

Marathon Digital's struggles were largely attributed to rising operational costs and the reduced rewards that followed the post-halving event in April 2024. 

“During the second quarter of 2024, our BTC production was impacted by unexpected equipment failures and transmission line maintenance at the Ellendale site operated by Applied Digital, increased global hash rate, and the April halving event,” company CEO Fred Thiel explained in a statement.

Marathon sold 51% of its mined Bitcoin to cover operating expenses but later purchased $100 million worth in the open market and re-adopted the HODL strategy for its Bitcoin holdings.

Block Inc. Q2 2024 Earnings Reports Growth in Bitcoin Revenue

Meanwhile, Jack Dorsey's Payment company, Block Inc., reported positive results in its Q2 2024 earnings. 

The company posted a 9% growth in Bitcoin revenue year-over-year, with total Bitcoin revenue reaching $2.61 billion over the period.

Block's net revenue hit $6.16 billion in the quarter, representing an 11% growth compared to the same period in 2023.

Block Earnings Breakdown ( $SQ )

RESULTS
🔴 Revenue: $6.16B (est $6.26B)
🟢 EPS: $0.93 (est $0.84)

GUIDE
🟢 Q3 Gross Profit: $2.22B (est $2.17B)
🟢 Q3 Adj. EBITDA: $695M (est $678M)

🟢 FY Gross Profit: $8.89B (est $8.73B)
🟢 FY Adj. EBITDA: $2.90B (est $2.79B) pic.twitter.com/9hPPILfIhb

— Sunday Markets News (@SMM_Newsletter) August 1, 2024

Excluding Bitcoin income, revenue was $3.54 billion, up 13% year-over-year, with the company's Cash App generating $4.13 billion in revenue and $67 million in Bitcoin gross profit, an increase of 52% over the same period last year.

Block attributed the Bitcoin gross profit expansion primarily to a rise in the average price of BTC. 

As of May 2, Block held approximately 8,211 BTC on its balance sheet for investment purposes, with a fair value of $515 million.