Shares of Marathon Digital Holdings (NASDAQ:MARA) fell Tuesday after the cryptocurrency miner released financial results for 2020. The report showed very meager revenue, which seems to have caught investors off guard. By the time the market closed, Marathon Digital stock was down 11%.
Otherwise, it was a quiet day for cryptocurrencies, with the price of Bitcoin (CRYPTO:BTC) holding fairly steady. However, other cryptocurrency mining stocks like SOS Limited (NYSE:SOS), Bit Digital (NASDAQ:BTBT), and The9 (NASDAQ:NCTY) were all down sharply, falling between 7% and 13% for the session. My hunch is these stocks pulled back, in part, because of Marathon Digital.
For 2020, Marathon Digital generated $4.4 million in revenue. Much of this came in the fourth quarter, during which it generated $2.6 million. Anecdotally, I’ve seen some investors dumbstruck by these numbers. After all, Marathon Digital is one of the biggest bitcoin miners out there and the price of bitcoin has risen so much. How could revenue possibly be so low?