Key Takeaways:
MARA Holdings reported Q2 revenue of $174.9 million, down 27% from a year earlier and missing consensus by 16.5%, as Bitcoin's average price fell 28%.
"The foundation has been built. Our focus now is monetizing it," Chief Executive Fred Thiel said.
The company posted a net loss of $611.3 million, including a $343 million fair-value loss on Bitcoin holdings. Adjusted loss was $1.60 per share, missing the consensus estimate of a 26-cent profit. Bitcoin production rose 3% to 2,422 coins, the highest quarterly output in over a year, while energized hashrate grew 22% to 70.3 EH/s. Energy cost per Bitcoin at owned sites climbed 15% to $38,690.
MARA ended the session at $10.65, down 5.25%, with a market value of $4.05 billion. The company secured $750 million in Bitcoin-backed facilities after the quarter, pledging 18,750 coins — about 53% of its June 30 reserve — to fund its $1.5 billion Long Ridge acquisition.
The company sold 23,093 Bitcoin in the first half, nearly five times the 4,669 coins it mined. Holdings fell to 35,577 Bitcoin at June 30 from 53,822 at Dec. 31, a 33.9% decline. The collateral backing the new facilities was worth roughly $1.21 billion at Thursday's Bitcoin price of about $64,300, implying a gross initial loan-to-value ratio of 62%.
Chief Financial Officer Salman Khan said the company is "funding a $1.5 billion enterprise value acquisition through Bitcoin-backed debt and assumption of Long Ridge's balance sheet." Management projects Long Ridge will contribute $144 million in annualized EBITDA, a 10.4x multiple, with about 70% of the facility's energy output under contract. Federal Energy Regulatory Commission approval is still pending.
MARA expects to secure at least two customer leases before year-end. The company's power portfolio has the potential to expand to 4.8 gigawatts, pending approvals. The 2-GW Texas site requires ERCOT and interconnection clearances.
Peer performance was mixed. Riot Platforms rose 5.2% over five sessions to $21.21, while IREN gained 3.1% to $37.93. CleanSpark fell 7.3% to $12.75. Bitcoin traded near $64,300 late Thursday.
Analysts were split before the release: nine Buy ratings, five Hold, and one Sell, with a median price target of $15 versus Thursday's close of $10.65.
The results show MARA's mining economics are deteriorating even as it pivots toward AI infrastructure. Investors will watch whether customer leases materialize before year-end and whether FERC approves the Long Ridge deal, which management expects before the end of the year.
This article is for informational purposes only and does not constitute investment advice.
