MARA Holdings Inc, the largest public Bitcoin miner, saw its stock price plummet by 9.1% in after-hours trading following the release of its third-quarter earnings report. The company reported a net loss of $124.8 million for Q3, slightly exceeding analysts’ expectations of a $0.34 per share loss. Despite a 34.5% revenue increase year-over-year, reaching $131.6 million, this fell short of the anticipated $148.1 million.
Investors reacted negatively after the resurgence in Bitcoin prices drove a 30% increase in MARA’s stock just the day before, closing at $25.23 before the Q3 results were announced. The company had faced a significant quarterly surge in operational costs, which saw an increase of $40 million and contributed to its disappointing earnings.
In a noteworthy development, MARA managed to mine 147 additional Bitcoin blocks in Q3, which, when coupled with a 17.1% increase in its energized hashrate — now nearing 37 EH/s — helped to buffer the financial impact of its net loss. The mining giant also reported an impressive 45% increase in its Bitcoin holdings, totaling 26,747 BTC, valued around $2.36 billion. The firm actively purchases Bitcoin as part of its strategy, having allocated $100 million from its cash reserves in Q3 alone with a focus on market downturns.
Looking ahead, MARA is in the process of expanding its mining capacity, with the recent acquisition of 372 megawatts of operational capacity at its facility in Ohio. While the upcoming 220 MW of capacity has yet to be energized, the company noted that typical timelines for mining infrastructure investments can span 12 to 18 months before generating significant revenue. With a current market capitalization of $7.43 billion, MARA remains a pivotal player in the accelerating landscape of American cryptocurrency mining.
