Bitcoin miner Marathon Digital Holdings reports net loss of $686.7M for fiscal year 2022, with impairments and digital asset declines as major factors, according to a press release. This is a significant decline compared to the prior-year period ended December 31, 2021, where the net loss was $(37.1) million.

The decline is due to several factors, including impairments related to mining rigs and advances to vendors, declines in the carrying value of digital assets, lower total margin, impairments related to Compute North bankruptcy, legal reserves, and increased interest expense.

"“Despite the operational progress, our financial performance was negatively impacted by several factors in 2022, including accelerated costs related to our exit from Hardin, the Compute North bankruptcy, and most significantly, a 64% decline in the price of Bitcoin that reduced our margin and resulted in impairment charges for our bitcoin holdings. " the firm wrote in statement.

As per the report, the firm produced a record 1,562 bitcoin in Q4, and increased its bitcoin production 30% year-over-year from 3,197 BTC in 2021 to 4,144 BTC in 2022.

Despite the challenging year, the company remains optimistic about its future prospects.

"In December 2022, we fully paid down our outstanding balances under the revolving line of credit. In February 2023, we terminated our credit facilities with Silvergate Bank, which resulted in the release of 3,132 bitcoin that were previously held as collateral. We are also pursuing alternative banking relationships in light of the recent developments with Signature Bank. We believe these strategic actions have bolstered our financial position and will continue providing us with optionality, which we believe is essential given the current environment." the firm stated.