Marathon(US:MARA)2025-11-04 21:15Bitcoin Mining Performance - As of September 30, 2025, the company mined 6,788 bitcoin, a decrease of 150 bitcoin, or 2%, from the prior year period [218]. - Bitcoin mining revenue for the three months ended September 30, 2025, was $242.0 million, a $118.9 million increase from the prior year, driven by an 88% increase in the average price of bitcoin mined [241][242]. - Total revenues for the three months ended September 30, 2025, reached $252.4 million, reflecting a 92% increase compared to $131.6 million in the prior year [241]. - Bitcoin mining revenue reached $678.6 million for the nine months ended September 30, 2025, up from $391.1 million in the prior year, reflecting a 73% increase in the average price of bitcoin mined [262]. - Total revenues for the nine months ended September 30, 2025 were $704.8 million, a 59% increase from $442.0 million in the prior year, driven mainly by a $287.4 million increase in Bitcoin mining revenue [261]. Financial Metrics - The average price of bitcoin was $114,068 as of September 30, 2025, compared to $63,301 a year earlier [222]. - The company recognized a gain on digital assets of $234.2 million for the three months ended September 30, 2025, compared to a gain of $30.1 million in the prior year [249]. - A gain on digital assets of $686.1 million was recognized for the nine months ended September 30, 2025, compared to a gain of $370.9 million in the prior year, a $315.2 million increase [269]. - Adjusted EBITDA for Q3 2025 was $395.6 million, compared to $22.3 million in Q3 2024, reflecting a significant year-over-year increase [288]. - Net income attributable to common stockholders for Q3 2025 was $123.1 million, a turnaround from a loss of $124.8 million in Q3 2024 [288]. Energy and Costs - The energized hashrate reached a new record high of 60.4 exahashes per second (EH/s) as of September 30, 2025, up from 36.9 EH/s in 2024 [221]. - The total energy capacity increased to approximately 1.8 gigawatts (GW) from 1.1 GW in the previous year [221]. - Energy costs represented 34.3% and 35.4% of owned mining revenues for the three and nine months ended September 30, 2025, respectively [226]. - Purchased energy costs for the three months ended September 30, 2025, totaled $43.1 million, a 60% increase from $27.0 million in the prior year, primarily due to the expansion of mining sites [243]. - Purchased energy costs increased to $128.3 million for the nine months ended September 30, 2025, up from $59.2 million in the prior year, a 117% increase [264]. Strategic Initiatives - The company initiated a restructuring plan incurring $20.9 million in costs during the quarter to align resources with strategic priorities [218]. - An investment agreement was signed to acquire a 64% ownership interest in Exaion SAS for approximately $168.0 million, aimed at expanding capabilities in AI and HPC infrastructure [218]. - The company plans to sell a portion of mined bitcoin to fund operational costs while continuing to hold the majority for long-term investment [223]. - The company entered into an investment agreement to acquire a 64% ownership interest in Exaion SAS for approximately $168.0 million, with options for further investment based on performance milestones [305]. Asset Management - The company held approximately 52,850 bitcoin with a carrying value of approximately $6.0 billion as of September 30, 2025 [224]. - As of September 30, 2025, the company held a total of 52,850 bitcoin, with 33% of holdings activated through its digital asset management strategy [232]. - The digital asset management strategy resulted in a fair value increase of approximately $343.3 million for the three months ended September 30, 2025, and $1.0 billion for the nine months ended September 30, 2025 [233]. - Cash and cash equivalents, excluding restricted cash, totaled $826.4 million as of September 30, 2025, with a total fair value of digital asset holdings, including bitcoin, at $6.0 billion [299]. Expenses and Liabilities - General and administrative expenses increased by approximately 45% to $85.3 million for the three months ended September 30, 2025, driven by strategic expansion and increased personnel costs [247]. - General and administrative expenses rose to $264.1 million for the nine months ended September 30, 2025, compared to $181.1 million in the prior year, marking a 46% increase [267]. - Depreciation and amortization for the three months ended September 30, 2025, totaled $167.3 million, a 64% increase from $101.9 million in the prior year, due to the deployment of additional mining rigs [248]. - Research and development expenses increased to $8.7 million for the three months ended September 30, 2025, up from $2.8 million in the prior year, representing a 210% increase [253]. - Cash flows from operating activities resulted in a use of funds of $578.0 million for the nine months ended September 30, 2025, compared to $363.6 million in the same period of 2024 [289]. Debt and Financing - As of September 30, 2025, 5,077 bitcoin were pledged as collateral for $350.0 million of outstanding borrowings under a Line of Credit with interest rates between 8.85% and 10.5% per annum [239]. - The company loaned out a total of 10,377 bitcoin, generating $9.6 million and $22.7 million of interest income for the three and nine months ended September 30, 2025, respectively [236]. - An additional line of credit of $150.0 million was secured in Q1 2025, bringing the total outstanding under the Line of Credit to $350.0 million as of September 30, 2025, all of which was fully utilized [310]. - Cash flows from financing activities provided $1.6 billion, primarily from the issuance of common stock and convertible senior notes [292]. Taxation - Income tax expense for the nine months ended September 30, 2025 was $127.0 million, compared to an income tax benefit of $42.8 million in the prior year [280]. - The enactment of the One Big Beautiful Bill Act did not materially impact the company's effective tax rate for the quarter ended September 30, 2025, and is not expected to affect the effective tax rate for 2025 [314]. - The company accounts for income taxes in accordance with ASC 740, recognizing deferred tax assets and liabilities based on enacted tax rates [312]. - The company evaluates tax positions each period and adjusts related tax assets and liabilities based on changing facts and circumstances [313]. Market Sensitivity - A hypothetical $10,000 change in the market price of bitcoin could result in an estimated $528.5 million increase or decrease in income (loss) before income taxes for the quarter ended September 30, 2025, highlighting the volatility of bitcoin's market value [316].