What caused MARA's earnings to rebound in Q4 2024?

Marathon Digital Holdings, Inc. (MARA) experienced a significant rebound in its earnings in Q4 2024, primarily driven by the following factors:

1. **Bitcoin Price Surge**: Bitcoin's price soared, reaching an all-time high of over $70,000, promising even higher highs. This favorable market condition boosted MARA's revenue, as the company is heavily involved in Bitcoin mining.
2. **Increased Hash Rate and Block Wins**: MARA reported a substantial increase in its energized hash rate, which surged by 93%. This improvement in mining efficiency likely led to higher Bitcoin production and revenue. Additionally, the company saw a 6% rise in block wins, indicating a more effective contribution to the Bitcoin network, which could have translated into increased earnings.
3. **Strategic Fundraising**: MARA issued an $850 million zero-coupon convertible note offering, which included an additional $150 million option for initial purchasers. This strategic fundraising provided the company with the capital needed to invest in mining operations and other growth initiatives, potentially leading to increased revenue and profitability.
4. **Cost Management**: Despite the challenges, MARA managed to reduce its cost per Bitcoin, achieving a cost basis of $6,250 to $7,500. This cost management likely contributed to the company's profitability in Q4 2024, as it minimized the impact of higher operational costs on earnings.

In summary, MARA's earnings rebound in Q4 2024 can be attributed to the Bitcoin price surge, increased hash rate and block wins, strategic fundraising, and effective cost management. These factors combined to create a favorable operating environment for the company, leading to improved financial performance.