Marathon Digital Holdings, Inc. (NASDAQ: MARA) reported a net loss of $4.52 per diluted share for its fourth quarter of fiscal 2025, a miss of more than $4.00 per share against a consensus estimate of a 30‑cent loss. Revenue for the quarter was $202.30 million, falling 5.6% year‑over‑year and 20.24% below the $253.65 million consensus estimate. The loss was driven largely by a $1.5 billion impairment charge on digital assets, which reflected the decline in Bitcoin’s fair value during the period.
The earnings miss was amplified by a combination of macro‑level and company‑specific factors. Bitcoin’s price fell from roughly $60,000 at the start of the quarter to below $50,000 by quarter‑end, reducing the revenue contribution from mined BTC. Simultaneously, network difficulty rose, increasing the cost of mining per coin. Operating expenses rose, with the cost of purchased energy per BTC mined climbing to $48,611, squeezing margins. The $1.5 billion impairment, a non‑cash accounting adjustment, accounted for a large portion of the net loss but did not affect cash flow.
During the quarter Marathon Digital mined 2,011 BTC and added 1,670 BTC to its treasury, bringing total holdings to nearly 54,000 BTC. The company’s energized hash rate grew 25% to 66.4 exahash, up from 53.2 exahash in Q4 2024, indicating continued investment in mining capacity despite the headwinds. The increase in holdings and hash rate reflects the company’s strategy to maintain a strong position in the evolving mining landscape while preparing for future demand.
Management highlighted a strategic pivot away from a pure mining model toward becoming an energy and digital infrastructure provider. The joint venture with Starwood Digital Ventures will develop AI and high‑performance computing data centers on MARA’s power‑rich sites, aiming to create higher‑margin, more stable revenue streams. This shift is intended to reduce earnings volatility tied to Bitcoin price swings and to capitalize on the growing demand for AI‑driven workloads.
Investor sentiment was mixed. The earnings miss prompted concern about the company’s profitability, but the announcement of the AI data‑center partnership generated optimism about a diversified future. The market’s reaction reflected the tension between short‑term financial performance and long‑term strategic positioning.
The company did not issue new forward guidance in the release, but the emphasis on the AI and HPC initiative signals management’s confidence in the long‑term viability of its diversified business model.
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