Why did MARA's gross profit plummet in Q3 2024?

Marathon Digital Holdings (MARA) experienced a significant decline in gross margin in Q3 2024, which can be attributed to several factors: 1. **Increased Operating Costs**: MARA reported a $92 million rise in operating costs year-over-year, which significantly impacted the company's gross margin. This increase in operating costs, coupled with a decrease in bitcoin production, led to a wider net loss in Q3. 2. **Bitcoin Halving Impact**: The Bitcoin halving event in April 2024 had a significant impact on MARA's operations. The halving event, which cuts mining rewards in half, reduced the company's bitcoin production. Despite an increase in hash rate, the company's bitcoin production decreased by 2% in December 2024, which could have led to a decline in gross margin. In conclusion, MARA's gross margin plummeted in Q3 2024 due to a combination of increased operating costs and the impact of the Bitcoin halving event. |code|Ticker|Name|Date|Gross Profit Margin|Gross Profit Margin YoY|market_code| |---|---|---|---|---|---|---| |MARA|MARA.O|MARA Holdings|2023 Q4|-3.9594|86.15415280997891|186| |MARA|MARA.O|MARA Holdings|2024 Q1|-1.8208|-4334.418604651163|186| |MARA|MARA.O|MARA Holdings|2024 Q2|-12.7487|-58.09791909521563|186| |MARA|MARA.O|MARA Holdings|2024 Q3|-24.114|-113.6496938874959|186|