Key Takeaways:
Marathon Digital Holdings reported a $1.60 per-share loss for Q2 2026, missing the $0.35 profit analysts expected, as Bitcoin's average price fell 28 percent.
"The question is no longer who can fund the next wave of compute, it is who has the power," Chief Executive Fred Thiel said.
Revenue came in at $174.9 million, down 26.7 percent from $238.5 million a year earlier and below the $208.37 million consensus. The company mined 2,422 Bitcoin, up from 2,358 in the prior-year period, but a $65.9 million revenue drag from lower Bitcoin prices outweighed production gains. A $343 million unrealized mark-to-market loss on digital assets drove most of the $611.3 million net loss.
Shares fell 5.25 percent to $10.65 in regular trading before edging up to $10.69 after hours. The company is pivoting toward AI infrastructure, targeting at least two leases before year-end and expecting the Long Ridge acquisition to add $144 million in annualized EBITDA.
Energized hashrate reached 70.3 exahash per second, up 22 percent from 57.4 EH/s a year earlier, while the company's share of available mining rewards rose to 5.9 percent from 5.5 percent in Q1. Daily cost per petahash improved 4 percent year over year to $27.7, and cost per kilowatt-hour at owned sites was $0.04.
The company ended the quarter with $421.3 million in cash and about $2.5 billion in combined cash and Bitcoin, holding 35,577 Bitcoin valued at roughly $2.1 billion at a $58,524 spot price. CFO Salman Khan said the company is funding the $1.5 billion Long Ridge acquisition through Bitcoin-backed debt and assumption of Long Ridge's balance sheet, "all non-dilutive financings." The company secured $600 million in Bitcoin-backed credit facilities with Coinbase and Two Prime at a weighted average cost of 7.56 percent.
Management projected Q3 2026 EPS of $0.43, Q4 break-even, and full-year 2026 revenue of $810.18 million. The company expects the Long Ridge deal to close after Federal Energy Regulatory Commission approval, possibly before year-end, and is advancing its Matagorda County, Texas site with up to 2 gigawatts of potential capacity. The Starwood partnership is progressing lease discussions across multiple sites.
The results show Marathon's earnings remain tightly coupled to Bitcoin's price swings, with every $10,000 change in Bitcoin price producing roughly a $350 million impact on the fair value of digital assets. Investors will watch for the two AI infrastructure lease signings management expects before year-end and the FERC decision on Long Ridge as the next events.
This article is for informational purposes only and does not constitute investment advice.
