MARA Holdings reports Q1 net losses, citing Bitcoin valuation adjustment

Marathon Digital Holdings recorded a $533.4M net loss in Q1 after Bitcoin valuation adjustments. The firm’s revenue jumped 30% to $213.9 million, with Bitcoin holdings surging 174% to 47,531 BTC.

The firm delivered strong operational metrics in Q1, with a 25% year-over-year improvement in daily cost per petahash. The company also noted that its cost of revenue per petahash per day declined by 10% during the same period.

MARA Holdings reports net loss in Q1

Marathon Digital Holdings, $MARA, Q1-25. Results:

📊 EPS: -$1.55 🔴
💰 Revenue: $213.9M 🔴
🔎 Loss driven by $510M markdown in digital assets, despite 30% revenue growth and 81% more blocks won YoY. pic.twitter.com/hUB1PGVQa1

— EarningsTime (@Earnings_Time) May 8, 2025

MARA reported a net loss of $533.4 million or negative $1.55 per diluted share, compared to last year’s Q1 net income of $337.2 million or $1.26 per diluted share. The firm noted that its revenue increased 30% from $165.2 million in Q1 2024 to $213.9 million in Q1 2025.

Despite recording positive revenue, the BTC miner’s stock price has dropped 15% year-to-date, suggesting a disconnect between market sentiment and company fundamentals. The company’s Bitcoin production dropped by 19% year-over-year to 2,286 BTC in Q1 2025. MARA Holdings argued that it faces challenges in Bitcoin production from rising global hash rates and increased network difficulty.

“We are a growth company, but not at any cost. Our goal isn’t to chase an arbitrary [Exahash] number. We believe that staying steadfast to our strategy will, in time, lead to greater value creation for our shareholders.”

~ Fredrick Thiel, CEO at MARA Holdings.

The company also saw a 174% increase in its Bitcoin holdings to over 47,531 BTC held on its balance sheet from just 17,320 BTC a year ago. MARA Holdings stated that the 12% drop in Bitcoin’s price as of March 31, 2025, resulted in an unrealized loss of $510.2 million. MARA’s adjusted EBITDA also decreased to a loss of $483.6 million in Q1 2025 from $542.1 million in Q1 2024.

MARA wants to monetize underutilized energy

Chairman and CEO of MARA, Fred Thiel, acknowledged that the crypto market values the company for its BTC holdings rather than for its mining operations. He also argued that states and institutions see Bitcoin as a strategic reserve, which will drive prices up.

MARA said it purchased its Bitcoin holdings at $35,728 per coin and $0.04 per kilowatt hour. The firm also revealed it completed the construction of a fully owned 200-megawatt data center in Ohio, with 100 megawatts now online. The crypto company acknowledged that it transformed from 0% owned and operated capacity to approximately 70% since the beginning of 2024.

Thiel said that MARA is focusing on collaborations with energy companies to monetize underutilized energy such as wind, solar, and flare gas. The firm’s CEO highlighted the importance of flexible load solutions to support AI data centers and revealed global discussions with major energy companies.

He revealed that the company was exploring a mix of thermal, wind, solar, and flare gas energy sources. Thiel acknowledged that off-grid mining sites, such as wind farms and flare gas operations, will offer the company low-cost energy and high profitability. He also noted that MARA focuses on intermittent operations that align with its energy demands, which can be more profitable despite lower uptime. Manon also highlighted that the IRR for these energy-based projects is expected to be higher than that of traditional models.

The company’s CFO, Salman Manon, noted that MARA has been reducing cash costs through capital and cutting on operations. He also said that the firm expects further cost reductions from sourcing low-cost megawatts and leveraging its own energy generation projects, such as the 114-megawatt wind farm in Texas, which helps decongest the grid and reduce electricity costs.

Thiel noted that MARA’s 30-megawatt immersion pilot project for AI data centers has shown the ability to overclock systems, reducing the number of miners needed and saving on CapEx. The company’s CEO added that the firm is developing liquid cold plate technology for AI applications, which he believes will offer environmental benefits and cost savings. 

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