MARA Holdings Inc, formerly known as Marathon Digital, experienced a significant decline of 9.1% in after-hours trading following a disappointing third-quarter earnings report. The company’s quarterly results revealed a loss of $0.34 per share, which, while slightly better than analysts had anticipated, still marked a setback. Revenue increased by 34.5% compared to the same period last year, totaling $131.6 million. However, this figure fell short of the expected $148.1 million, raising concerns among investors.
The surge in operational expenses by $40 million during the quarter played a critical role in the company’s financial performance, contributing to a staggering net loss of $124.8 million for Q3. Despite this poor outcome, MARA’s share price had previously risen approximately 30% on Nov. 11, largely due to a rally in Bitcoin prices nearing $90,000, only to close the day at $25.23 before experiencing a drop to $22.94 after the earnings announcement. Overall, MARA’s stock has gained 10% since the beginning of the year.
MARA reported an increase in Bitcoin mining activity, having mined 147 more Bitcoin blocks in the third quarter. The company’s hash rate improved by 17.1% to nearly 37 exahashes per second (EH/s), which helped to limit the extent of the net loss. Additionally, the firm expanded its Bitcoin holdings by 45%, bringing the total to 26,747 BTC valued at approximately $2.36 billion, as part of its strategy to retain all mined Bitcoins.
In a strategic move, MARA also allocated $100 million from its cash reserves for additional Bitcoin purchases during Q3. The company reaffirmed its commitment to invest in mining operations while seizing opportunities for Bitcoin acquisition, particularly during market downturns. In a recent development, MARA announced the acquisition of 372 megawatts of capacity at its Ohio facility, with plans to expand its operations further. However, the company did not state when the additional capacity would come online, noting that it usually takes 12 to 18 months before these investments begin generating revenue. As the largest public Bitcoin miner globally, MARA holds a market capitalization of $7.43 billion.
