What drove MARA's earnings decline in early 2024?

Marathon Digital Holdings, Inc. (MARA) experienced a decline in earnings in early 2024, with a reported net loss of $124.8 million, or $0.42 per diluted share, in Q1 2024. While the company's revenue increased by 35% year-over-year to $131.6 million in Q3 2024, several factors contributed to the earnings decline: 1. **Increased Operating Loss**: The net loss was attributed to a $92 million rise in operating loss compared to the previous year. 2. **Debt Extinction Costs**: The absence of a $83 million net gain from debt extinguishment also contributed to the increased loss. 3. **Cost of Revenue**: The cost of revenue improved by 18% year-to-date, with a 10% sequential improvement in Q3 2024, driven by increased operational efficiency. In summary, MARA's earnings decline in early 2024 was primarily driven by increased operating loss and debt extinction costs, along with the cost of revenue.