The company posted a $1.3 billion net loss, largely driven by unrealized losses on its Bitcoin holdings as Bitcoin declined 23% during the quarter. MARA shares fell 3.44% in after-hours trading after the results. The company also sold more than 15,100 Bitcoin worth $1.1 billion in late March and confirmed it is focusing on AI and high-performance computing infrastructure. MARA Holdings Shares Slide Shares in MARA Holdings dropped in after-hours trading on Monday after the company posted disappointing first-quarter earnings that fell short of Wall Street expectations. MARA revealed that revenue for the quarter ending March 31 fell 18% year-over-year to $174.6 million, missing analyst estimates of $192.7 million. The company also posted a net loss of $1.3 billion, which is much wider than the $533.4 million loss reported during the same period last year. Earnings per share came in at a loss of $3.31, underperforming expectations for a $2.20 loss per share. Investors reacted negatively to the earnings release, which sent MARA shares down 3.44% in after-hours trading to $12.93. The decline erased gains from the regular trading session, where the stock climbed 3.48% to close at $13.39. Despite some recovery attempts this year, MARA stock is still down roughly 16% over the past 12 months. MARA share price over the past 24 hours (Source: Google Finance) The company attributed most of its quarterly losses to unrealized losses tied to its massive Bitcoin treasury holdings. MARA currently holds 38,689 Bitcoin, and the cryptocurrency’s 23% decline during the quarter greatly impacted the valuation of those assets. In response to market conditions, the company sold more than 15,100 Bitcoin worth approximately $1.1 billion during the final week of March. Although Bitcoin mining is still MARA’s core business, the company is shifting its focus toward artificial intelligence and high-performance computing infrastructure. Management said the strategy is designed to diversify revenue streams and reduce reliance on volatile cryptocurrency mining economics. MARA’s AI expansion efforts include partnerships with major infrastructure players like Starwood Capital and the acquisition of Long Ridge Energy & Power for $1.5 billion in late April. The company plans to convert certain Bitcoin mining facilities into AI and HPC data centers capable of supporting large-scale computing workloads. According to MARA, its approach involves co-locating AI infrastructure alongside existing Bitcoin mining operations, which allows the company to generate mining revenue in the short term while preserving the flexibility to redirect power capacity toward AI computing as demand grows. The Long Ridge facility alone could eventually support up to 600 megawatts of AI computing capacity. The company also noted that approximately 90% of its non-hosted mining capacity could potentially be repurposed for AI and critical IT workloads in the future. As part of this pivot, MARA stated that it currently has no plans to purchase more Bitcoin mining hardware.
