MARA Holdings Delivers Record Profit on Bitcoin Gains

Core Insights - MARA Holdings reported a quarterly loss of 81 cents per share, which was wider than the Zacks Consensus Estimate of a loss of 53 cents, and compared to a loss of $0.24 per share in the same quarter last year [1] - On a GAAP basis, MARA reported EPS of $1.84, a significant improvement from a loss of 72 cents a year ago, driven by a $1.2 billion gain from the fair value of digital assets [2] - Net income reached $808.2 million, marking a 505% year-over-year increase, making it the company's most profitable quarter ever [3] Financial Performance - Revenues surged 64% year over year to a record $238.5 million, driven by mining 2,358 BTC during the quarter, which was a 3% increase from the first quarter [5][6] - Adjusted EBITDA increased to $1.25 billion, reversing a loss of $483.6 million from the previous quarter and significantly higher than the $125.5 million loss in the year-ago quarter [3][6] - The cost per petahash per day decreased by 24% year over year to $28.7, while the energy cost per Bitcoin declined by 5.6% since the first quarter to $33,735 [10] Operational Efficiency - The energized hashrate grew to 57.4 EH/s, an 82% increase from 31.5 EH/s a year ago, and up 6% sequentially [8] - MARA deployed 30,000 new miners with an energy efficiency of 18.3 J/TH, emphasizing its commitment to sustainable scaling [8] - The company ended the quarter with 49,951 BTC and total liquidity of $5.4 billion, positioning it for aggressive maneuvers in the crypto economy [13] Strategic Positioning - MARA closed a $950 million upsized 0.00% Convertible Senior Notes offering due in 2032 and repurchased $19.4 million in 1% Senior Notes due 2026 at a discount, indicating prudent capital structuring [14] - The trailing 12-month adjusted Return on Capital Employed was 27%, showcasing an efficient capital reinvestment strategy [15] - The added funds will allow MARA to strategically invest in more Bitcoin, M&A opportunities, and potential debt buybacks, laying the groundwork for sustained expansion [16]