Why did MARA's Q4 2024 earnings surprise analysts?

Marathon Digital Holdings (MARA) experienced a significant earnings surprise in Q4 2024, with an EPS surprise of $1.4 and a revenue surprise of $33.66 million, compared to the estimated EPS of -$0.16 and estimated revenue of $180.74 million. This positive surprise can be attributed to several key factors:

|code|Ticker|Name|Date|Revenue Surprise|EPS Surprise|market_code|
|---|---|---|---|---|---|---|
|MARA|MARA.O|MARA Holdings|2024 Q1|-1.5492E7|1.04|186|
|MARA|MARA.O|MARA Holdings|2024 Q2|-1.5891E7|-0.05|186|
|MARA|MARA.O|MARA Holdings|2024 Q3|-2.0023E7|-0.07|186|
|MARA|MARA.O|MARA Holdings|2024 Q4|3.366E7|1.4|186|

1. **Strategic Expansion and Increased Hash Rate**: Marathon Digital has been actively expanding its mining operations and diversified its portfolio of digital assets. The company's hash rate grew significantly, with an energized hash rate surge of 93% in Q3. This increase in hash rate contributed to higher mining revenues.
2. **Bitcoin Price Rally**: The price of Bitcoin has experienced a significant surge, which has benefited Marathon Digital as a leading Bitcoin miner. The company has also benefited from the broader cryptocurrency market rise, which has created a favorable environment for growth.
3. **New Business Opportunities**: MARA is positioning itself as an infrastructure supplier to data center operators and is leveraging its proprietary technologies to lead in energy transformation. These strategic moves are likely to open up new revenue streams and enhance the company's competitive position.

In summary, Marathon Digital Holdings' Q4 2024 earnings surprise can be attributed to a combination of strategic expansion, increased hash rate, Bitcoin price rally, and new business opportunities. These factors collectively contributed to the company's strong financial performance and exceeded market expectations.