Marathon(US:MARA)2026-02-26 23:00Financial Data and Key Metrics Changes - Revenues in Q4 2025 were $202.3 million, down from $214.4 million in Q4 2024, while full-year revenues grew 38% to $907.1 million from $656.4 million in 2024 [18][19] - The company reported a net loss of $1.7 billion or $4.52 per diluted share in Q4 2025, compared to a net income of $528.3 million or $1.24 per diluted share in Q4 2024 [21][22] - The average cost per kWh for the company's own sites was $0.04 in 2025, with the purchased energy cost per Bitcoin for Q4 at $48,611, up from $31,608 in Q4 2024 [23] Business Line Data and Key Metrics Changes - The company mined an average of 21.9 Bitcoin per day in Q4 2025, down from 27.1 Bitcoin per day in Q4 2024, resulting in approximately 481 fewer Bitcoin mined this quarter [19][20] - Energized hash rate increased from 53.2 EH/s to 66.4 EH/s between Q4 2024 and Q4 2025, reflecting a 25% growth [21] Market Data and Key Metrics Changes - Bitcoin price volatility was significant, starting at approximately $111,000 and reaching a high of $125,000 before falling to around $87,000 by quarter-end, creating a challenging macro environment [17] - The global hash rate increased modestly, as miners remained cautious amid the volatility [18] Company Strategy and Development Direction - The company announced a strategic partnership with Starwood Digital Ventures to expand into AI and high-performance computing, transitioning from a pure-play Bitcoin miner to an energy and digital infrastructure company [4][5] - The joint venture is expected to deliver over 1 gigawatt of near-term IT capacity, with a pathway to more than 2.5 gigawatts, enhancing the company's ability to serve enterprise and hyperscale customers [5][16] - The acquisition of a 64% stake in Exaion aims to diversify revenue and expand enterprise-grade AI and HPC capabilities [8][17] Management's Comments on Operating Environment and Future Outlook - Management emphasized the importance of maintaining financial flexibility amid Bitcoin price volatility and indicated a focus on high-value near-term opportunities [14][27] - The company remains committed to Bitcoin mining as a core pillar of its strategy, despite recent challenges, and aims to leverage its power ownership for long-term value creation [11][15] Other Important Information - The company recorded a non-cash goodwill impairment charge of $82.8 million in Q4 2025, which did not impact liquidity or cash flows [22] - Approximately 28% of the company's Bitcoin holdings were activated through a digital asset management strategy as of year-end [25] Q&A Session Summary Question: Financing dynamics around the 50% stake in the partnership with Starwood - The company clarified that its initial contribution to the joint venture would be the asset itself, along with capitalizing its share of development costs [31] Question: Revenue generated from Bitcoin mining during load balancing - The company confirmed that revenue from Bitcoin mining during load balancing would primarily be retained by MARA [35] Question: Timeline for signing deals with tenants - Management indicated that the partnership with Starwood would accelerate the timeline for signing deals due to established relationships and trust with prospective tenants [44] Question: Interest in acquiring powered sites - The company is still pursuing sites that are already powered or have been approved, focusing on immediate opportunities rather than long-term investments [48] Question: Project sizes and economics in the joint venture - Management stated that they are looking at larger projects rather than smaller ones, with specific economics to be disclosed as tenant agreements are finalized [69]