Marathon(US:MARA)2025-11-04 12:10Financial Performance - Revenues increased 92% to $252.4 million in Q3 2025, up from $131.6 million in Q3 2024[4][5] - Net income increased to $123.1 million, a significant improvement from a net loss of $124.8 million in Q3 2024[4][10] - Adjusted EBITDA surged 1,671% to $395.6 million compared to $22.3 million in Q3 2024[6] - Revenue increased by 92% to $252.4 million in Q3 2025 from $131.6 million in Q3 2024, driven by an 88% increase in the average bitcoin price[72][73] - Net income rose to $123.1 million, or $0.27 per diluted share, in Q3 2025, compared to a net loss of $124.8 million, or ($0.42) per diluted share, in Q3 2024[77] - Adjusted EBITDA increased to $395.6 million in Q3 2025 from $22.3 million in Q3 2024[89] - The adjusted EBITDA increased due to a rise in the change in fair value of digital assets, contributing to a net income of $123.1 million for Q3 2025, compared to a net loss of $124.8 million in Q3 2024[109] - Net income attributable to common stockholders for Q3 2025 was $123,128, compared to a loss of $124,789 in Q3 2024, representing a significant turnaround[111] - Adjusted EBITDA for Q3 2025 was $395,637, a substantial increase from $22,343 in Q3 2024, indicating strong operational performance[111] Bitcoin Holdings and Mining Operations - Bitcoin holdings rose 98% to 52,850 BTC, valued at approximately $6.0 billion, including 17,357 BTC loaned and pledged as collateral[12] - The company held 52,850 BTC at the end of September 2025, with 2,144 BTC mined during the quarter[57][72] - As of September 30, 2025, the company held a total of 52,850 bitcoin, with 17,357 bitcoin loaned, actively managed, or pledged as collateral, representing approximately 33% of total holdings activated through its digital asset management strategy[98] - Purchased energy cost per bitcoin was $39,235 in Q3 2025, up from $32,433 in Q3 2024 due to increased network difficulty[72][82] Hashrate and Mining Efficiency - Energized hashrate increased 64% to 60.4 EH/s in Q3 2025 from 36.9 EH/s in Q3 2024[7] - Energized hashrate increased by 64% to 60.4 EH/s in Q3 2025 from 36.9 EH/s in Q3 2024, with approximately 5,000 new miners deployed[72][88] - Cost per kWh was $0.04 for Q3 2025, with a cost per petahash per day improving by 15% from Q3 2024[9][11] - Cost per petahash per day improved by 15% from $37.0 in Q3 2024 to $31.3 in Q3 2025[72][81] Strategic Initiatives and Acquisitions - The acquisition of Exaion, valued at approximately $168.0 million, is expected to enhance MARA's capabilities in AI and private cloud operations[44] - The company agreed to acquire approximately 64% ownership interest in Exaion for approximately $168.0 million, enhancing capabilities in AI/HPC infrastructure[72] - MARA's collaboration with MPLX aims to develop integrated power generation facilities and data center campuses in West Texas, enhancing control over energy generation[27][35] - A joint initiative with MPLX was announced to develop integrated power generation and data center campuses in West Texas[72] Future Outlook and Growth Strategy - The company aims to derive 50% of its revenue from international operations by 2028, focusing on Europe and the Middle East for growth opportunities[39] - The company expects to generate incremental income through its digital asset management strategy, which includes lending and structured trading arrangements[95] - The company plans to strategically sell a portion of bitcoin produced from mining operations to support ongoing operating expenses, marking a shift in its investment approach[97] - Future outlook includes continued focus on operational efficiency and market expansion, with management emphasizing growth targets in adjacent markets[119] Financial Position and Capital Management - Unrestricted cash and cash equivalents totaled $826.4 million as of September 30, 2025, up from $391.8 million as of December 31, 2024[94] - The company raised $571.9 million from at-the-market equity sales in 2025, primarily for miner purchases and infrastructure acquisition[100] - The company issued $1.025 billion of 0.00% Convertible Senior Notes due 2032 on July 25, 2025, and repurchased approximately $19.4 million in existing convertible senior notes, resulting in a $1.0 million gain on extinguishment of debt[99] - As of September 30, 2025, the company held $7 billion in liquid assets, providing flexibility for domestic growth and international expansion[101] - The company is focused on executing a pipeline of energy infrastructure projects in the U.S. and internationally, aiming to expand capabilities while keeping costs low[102] Operational Costs and Expenses - General and administrative expenses increased to $47.6 million in Q3 2025 from $35.4 million in the prior year period, reflecting strategic expansion and headcount growth[86] - Depreciation and amortization expenses for the nine months ended September 2025 were $496,437, compared to $300,199 in the same period of 2024, indicating increased investment in fixed assets[111] - Interest income, net, for Q3 2025 was $(4,929), compared to $(1,552) in Q3 2024, showing a decline in interest income[111] - The company incurred restructuring costs of $20,905 in Q3 2025, reflecting ongoing efforts to optimize operations[111] - Impairment of assets was recorded at $26,253 for the nine months ended September 2025, indicating potential challenges in asset valuation[111] - The company reported a net gain from extinguishment of debt of $(1,029) for Q3 2025, suggesting strategic financial management[111] Asset Growth - Total assets for the last twelve months (LTM) reached $7,530,146, up from $6,136,839 in the previous year, reflecting growth in the company's asset base[111] - The company reported a return on capital employed of 27% for Q3 2025, consistent with the previous quarter, demonstrating effective capital utilization[111]