MARA Stock Slips Overnight On Revenue Miss: CEO Says Market Is Becoming More Selective About How AI Infrastructure Is Financed

• The drop was primarily due to a decline in average Bitcoin prices.
• The company posted diluted earnings per share of $1.28, beating consensus expectations of a loss per share of $0.33.
• The company said that it mined 2,247 Bitcoin (BTC) in the latest quarter, up about 103 coins from a year earlier.

Shares of MARA Holdings Inc. (MARA) fell about 0.3% in overnight trading late Monday after the company missed third-quarter revenue expectations, highlighting the impact of weaker Bitcoin prices on its mining business. 

But the earnings report also highlighted its growing push towards artificial intelligence (AI) infrastructure. In the earnings call, CEO Fred Thiel said financing conditions in the AI market were getting more selective, with investors demanding access to near-term power and credible project completion plans.

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BTC Impact: MARA Revenue Falls 35%

The company’s revenue fell 35% year-over-year to $164.2 million, missing estimates of $176.13 million, as per data from Fiscal.ai. This was primarily due to the drop in average Bitcoin prices.

Meanwhile, the company posted diluted earnings per share of $1.28, beating consensus expectations of a loss per share of $0.33, primarily driven by an $885.3 million unrealized, non-cash fair-value gain on digital assets, as well as lower general and administrative expenses.

CEO Flags More Selective AI Infrastructure Financing Market

Beyond its mining operations, MARA has been pursuing opportunities in AI and high performance computing infrastructure. MARA’s CEO Fred Thiel said in a call with investors that the market is becoming more selective about AI infrastructure and is demanding more than just a spot in an interconnection queue.

“The market is becoming more selective about how AI infrastructure is financed and delivered,” Thiel said. “Tenants, lenders, and investors want more than a position in an interconnection queue. They want near-term power, a suitable site, the right development partner, creditworthy tenants, and a credible path to completion.”

MARA also reported significant progress in securing prospective data center tenants, noting in a letter to shareholders that its teams have hosted prospective tenants across nearly all of its sites, including at Kearney, Long Ridge in Ohio, Matagorda County, Texas, and Exaion.

MARA’s Share Repurchase Program

Additionally, the company also authorized a share repurchase program of up to $500 million. Thiel said the authorization reflects management's confidence in the company's long-term strategy and provides flexibility to deploy capital where it can generate the highest returns.

MARA Reduces Debt Through Bitcoin Sale

Additionally, the company said it has reduced 37% of total debt since the beginning of the year, and strengthened its balance sheet.

“After the quarter ended, we sold Bitcoin to repay $750 million of Bitcoin-backed debt, releasing 18,750 Bitcoin that had been pledged as collateral,” the company’s CFO, Salman Khan, said on the call. 

Meanwhile, Thiel said that Bitcoin was a flexible asset rather than a permanent holding. “Bitcoin remains our operating foundation and a flexible way to monetize power while we develop higher value infrastructure opportunities,” he said.

The company said that it mined 2,247 Bitcoin (BTC) in the latest quarter, up about 103 coins from a year earlier.

MARA Stock: Retail Stance

On Stocktwits, retail sentiment around MARA stock was ‘extremely bullish’ at the time of writing. 

One user said, “$MARA Risk/Reward is your favor. Long and swing with additional shares. This quarter the price action here will payoff huge dividends.”

However, another user pointed out, “$MARA net income increase was from unrealized bitcoin appreciation so numbers are totally cooked.”

MARA stock is down 26% year-to-date. 

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