In short
- MARA reported a considerable $533 million internet loss largely as a result of Bitcoin valuation changes.
- Income grew 30% year-over-year to $214 million however nonetheless missed expectations.
- Its mining output fell 19% regardless of doubling its hashrate after the 2024 Bitcoin halving, which slashed block rewards.
On Thursday, Bitcoin miner MARA Holdings reported a staggering $533 million internet loss for the primary quarter this yr, regardless of amassing Bitcoin at a document tempo and steadily rising its year-over-year income.
The corporate’s Q1 earnings reported a 30% soar in income to $214 million, with its Bitcoin holdings ballooning to 47,531 BTC, a 174% enhance from simply 17,320 BTC a yr in the past.
Nonetheless, the corporate’s outcomes missed Wall Road’s expectations. Its internet earnings loss expanded to $533 million (at $1.55 per share) from $337 million (from $1.26 per share) within the earlier yr.
“We’re a progress firm, however not at any price,” CEO Fred Thiel wrote in a letter to shareholders. “Our purpose is not to chase an arbitrary [Exahash] quantity.”
The top end result? A significant hit to its backside line, regardless of roughly tripling its Bitcoin holdings.
On the similar time, its Bitcoin manufacturing dropped by 19% year-over-year to 2,286 BTC in Q1 2025, primarily as a result of Bitcoin halving final yr that decreased mining rewards.
Nonetheless, MARA sees Bitcoin’s potential as “essentially the most optimum macro hedge in unsure environments,” Thiel mentioned. That is all of the extra essential as MARA seeks to remodel itself “right into a vertically built-in digital vitality and infrastructure firm,” he mentioned.
Decrypt reached out to MARA Holdings for additional remark.
Paper losses
MARA’s large quarterly loss stemmed primarily from a $510 million damaging adjustment on the truthful worth of its Bitcoin holdings, because the alpha crypto’s value declined from $93,354 to $82,534 in the course of the quarter.
Crypto accounting requirements permitted in 2023 have additionally modified how MARA reviews its Bitcoin holdings.
As a substitute of utilizing the earlier cost-less-impairment mannequin, the corporate now measures its crypto belongings at truthful market worth on the finish of every reporting interval, with modifications flowing immediately by means of its internet earnings. In consequence, it created dramatic paper losses regardless of these being non-cash costs.
The corporate maintains a powerful liquidity place with $196 million in money and almost $4.1 billion in mixed money and digital belongings as of the tip of Q1, its consolidated steadiness sheet exhibits.
“We consider that staying steadfast to our technique will, in time, result in larger worth creation for our shareholders,” Thiel wrote.
Edited by Sebastian Sinclair
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