MARA Shares Fall After First Quarter Revenue Miss and $1.3 Billion Loss

MARA Holdings said Bitcoin mining continues to serve as the company’s “operational foundation” as it pushes forward with expansion plans into the artificial intelligence sector.

Shares of MARA Holdings declined in after-hours trading on Monday after the Bitcoin miner reported wider first-quarter losses compared with a year earlier and revenue that fell short of analyst expectations.

According to earnings released on Monday, MARA Holdings posted quarterly revenue of $174.6 million for the period ending March 31, marking an 18% decline from a year earlier and falling below Wall Street estimates of $192.7 million.

The company posted a quarterly loss of $1.3 billion, significantly wider than the $533.4 million loss recorded during the same period a year earlier. Earnings per share came in at a loss of $3.31, missing analyst expectations of a $2.20 loss per share.

Shares of MARA Holdings (MARA) dropped 3.44% in after-hours trading on Monday to $12.93, wiping out gains from the regular session, where the stock had closed 3.48% higher at $13.39.

MARA Holdings stock has declined 16% over the past 12 months, though the company has started to recover this year as it shifts its focus toward developing artificial intelligence data centers.

The company said its first-quarter losses were mainly driven by unrealized declines tied to its 38,689 Bitcoin treasury holdings after the cryptocurrency dropped 23% during the quarter. MARA Holdings also disclosed that more than 15,100 Bitcoin worth roughly $1.1 billion were sold during the final week of March.

MARA Expands AI Strategy as Bitcoin Mining Pressure Intensifies

MARA Holdings said Bitcoin mining continues to act as the company’s “operational foundation” while it expands further into AI and high-performance computing in an effort to diversify revenue sources.

MARA Holdings is among several US-based Bitcoin mining firms that have shifted from profits to losses as difficult mining conditions continue putting pressure on the industry.

Bitcoin is currently trading more than 35% below its all-time high of $126,080, sharply reducing miner revenue generated per block, while mining difficulty — a measure of the computational effort required to mine a block — has climbed nearly 30% over the past year.

MARA Holdings has also lost momentum against competitors, dropping from the largest Bitcoin miner by market capitalization to seventh place as rival firms expanded more aggressively into the AI sector.

MARA Holdings is currently focusing its AI strategy on a partnership with Starwood Capital to transform Bitcoin mining facilities into AI and high-performance computing data centers, along with Long Ridge Energy & Power, a gas-fired power plant and data center acquired for $1.5 billion in late April.

“Our strategy centers on co-locating new infrastructure with existing Bitcoin mining operations,” MARA said. “This approach creates flexibility: we can generate revenue today through Bitcoin mining while preserving the option to redirect power toward AI and critical IT loads as those opportunities mature on the same sites.”

MARA Holdings added that its acquisition of Long Ridge Energy & Power could ultimately provide support for 600 megawatts of AI computing capacity, while nearly 90% of its non-hosted mining infrastructure may be repurposed for AI and IT computing operations.

The company said it currently has no plans to acquire additional Bitcoin mining hardware in the future.