Marathon(US:MARA)2025-07-29 20:15Bitcoin Holdings and Valuation - As of June 30, 2025, the company held approximately 49,951 bitcoin, with a carrying value of about $5.3 billion, reflecting a fair value of $107,173 per bitcoin[206][207]. - The company reported a total of 2,004 bitcoin held and actively managed within the SMA as of June 30, 2025[221]. - The average price of bitcoin mined increased to $96,203 for the six months ended June 30, 2025, up from $58,176 in the prior year, reflecting a $38,026 increase[243]. - The company held a total of 49,951 bitcoin with a fair value of $5.3 billion as of June 30, 2025, with the fair value of a single bitcoin at approximately $107,173[273]. Mining Operations - The company mined 4,644 bitcoin during the six months ended June 30, 2025, a decrease of 225 bitcoin, or 5%, compared to the prior year period, primarily due to the April 2024 halving event[209]. - The energized hashrate reached a record high of 57.4 EH/s as of June 30, 2025, up from 31.5 EH/s in the previous year[211]. - Bitcoin mining revenue for Q2 2025 was $228.8 million, a 77% increase from $129.1 million in Q2 2024, driven by a 50% increase in average bitcoin price[225]. - Bitcoin mining revenue reached $436.5 million for the six months ended June 30, 2025, compared to $267.9 million in the prior year, reflecting a 63% increase[243]. Financial Performance - Total revenues for Q2 2025 reached $238.5 million, up $93.3 million or approximately 64% compared to $145.1 million in Q2 2024[225]. - The company recognized a gain on digital assets of $846.0 million in Q2 2025, compared to a loss of $148.0 million in the prior year period, marking a $994.0 million increase[233]. - For the three months ended June 30, 2025, the company reported a net income of $808.2 million, compared to a net loss of $199.7 million for the same period in 2024[267]. - Adjusted EBITDA for the three months ended June 30, 2025, was $1.25 billion, significantly improving from a loss of $125.5 million in the prior year[267]. Expenses and Impairments - General and administrative expenses increased by $39.5 million, or approximately 74%, totaling $92.9 million in Q2 2025, primarily due to strategic expansion and increased personnel costs[231]. - Research and development expenses rose to $8.5 million in Q2 2025, a 122% increase from $3.8 million in the prior year, reflecting ongoing innovation initiatives[238]. - General and administrative expenses increased by $56.4 million to $178.8 million for the six months ended June 30, 2025, reflecting a 46% rise due to operational scale and acquisitions[249]. - The company recognized an impairment of $26.0 million related to damaged mining equipment during Q2 2025 due to a severe storm[235]. - The company recognized an impairment of $26.0 million for mining equipment due to storm damage during the six months ended June 30, 2025[253]. Energy Costs - Energy costs represented 34.1% and 36.1% of owned mining revenues for the three and six months ended June 30, 2025, respectively[212]. - The average price of direct energy paid for owned facilities was $0.04 per kWh for both the three and six months ended June 30, 2025[213]. - Purchased energy costs increased by approximately 60% to $41.7 million in Q2 2025, driven by the expansion of owned mining sites[227]. Interest Income and Expenses - The company generated $6.8 million and $13.1 million in interest income from loaned bitcoin for the three and six months ended June 30, 2025, respectively[220]. - Interest income increased by $16.7 million to $21.6 million for the six months ended June 30, 2025, primarily due to income from loaned bitcoin and higher cash balances[259]. - Interest expense rose by $20.2 million to $22.8 million for the six months ended June 30, 2025, mainly due to Convertible Notes and Line of Credit[259]. Future Outlook and Strategy - The company aims to reach a target of 75 EH/s by the end of 2025, following strategic partnerships with LG-backed PADO AI and TAE Power Solutions[208]. - The company expects future bitcoin holdings to generally increase, funded primarily through production activities and occasional purchases[276]. - The company anticipates sufficient liquidity to support ongoing operations over the next 12 months, primarily through public capital markets[281].