Is MARA Holdings Stock Still a Buy After a Post-Earnings Drop?

Core Insights - MARA Holdings, Inc. (MARA) experienced a larger-than-expected loss in its third-quarter 2025 earnings, leading to a 6% decline in share price, raising questions about its investment status [1][5] Business Transition - The company is transitioning from traditional cryptocurrency mining to an integrated digital infrastructure that supports blockchain and AI computing workloads, with the installation of AI inference racks completed at the Granbury site [2] - MARA expanded its energy control footprint through partnerships in West Texas, with an initial 400-megawatt campus that can scale to 1.5 gigawatts, enhancing power cost efficiency [3] Financial Performance - MARA reported revenues of $252.4 million, a 92% increase year over year, and 3% above the Zacks Consensus Estimate, despite a loss of 32 cents per share, which was a 23% miss against expectations but an improvement from a loss of 38 cents a year earlier [4][5] - The company produced 2,144 BTC and purchased an additional 2,257 BTC, bringing total holdings to nearly 53,000 BTC, nearly double from the prior year, with a recorded gain of $343.1 million on digital assets [7] Operational Efficiency - Approximately 70% of MARA's megawatt capacity now comes from owned and operated sites, improving control over power costs, with a purchased energy cost per bitcoin at $39,235 and a 15% decrease in daily cost per petahash year over year [9][10] Strategic Outlook - MARA aims to integrate energy generation, blockchain validation, and AI processing within a single operational ecosystem, focusing on building cost-efficient, high-capacity energy infrastructure [13] - The company is innovating data center designs, such as direct-to-chip cooling, to enhance scalability and lower long-term maintenance costs, positioning itself for high-performance computing applications [14] Investment Considerations - MARA is currently viewed as a Hold due to expected near-term volatility and heavy capital requirements for infrastructure expansion, with a projected loss of 23 cents compared to earnings of $1.24 in the previous year [15] - Despite valuation concerns indicated by an EV/EBITDA ratio of 75.51, the company's diversification into AI and blockchain infrastructure, along with a strong liquidity position, supports long-term growth potential [16][17]