MARA disclosed that it sold approximately $1.5 billion in Bitcoin during the first quarter to repurchase convertible bonds and support acquisitions of energy assets. The company also signaled a clearer strategic shift in its earnings report: while continuing mining operations, it plans to allocate more resources toward power infrastructure and AI data centers in the future.
Revenue declined, and the amount of holdings decreased.
The financial report showed that MARA's first-quarter revenue was $174.6 million, a 18% year-over-year decline, with a net loss of approximately $1.3 billion. Management stated that the loss was largely due to changes in the fair value of digital assets, as the price of Bitcoin fell by double digits during the period, resulting in an approximate $1 billion negative impact.
On an operational level, the company produced 2,247 bitcoins this quarter, with powered hash rate increasing 33% year-over-year to 72.2 EH/s; however, this growth was insufficient to offset the pressure from declining bitcoin valuations.
MARA sold a total of 20,880 bitcoins this quarter, reducing its end-of-quarter holdings to 35,303 bitcoins, below the 38,689 bitcoins held at the beginning of the year. A nearly $1.1 billion sale near the quarter’s end was primarily used to repurchase convertible bonds. According to Bitcoin Treasuries data, this change caused MARA to drop from second to fourth place in the ranking of publicly traded companies by bitcoin holdings.
Sell coins to repay debt and make acquisitions
The company stated that this sale does not represent a departure from its Bitcoin strategy, but rather treats Bitcoin as a deployable asset on its balance sheet to improve financial structure and support expansion.
The most significant transaction currently underway is the proposed acquisition of the Long Ridge Energy & Power campus in Hannibal, Ohio, for $1.5 billion. The project includes a 505-megawatt natural gas power plant and extensive land available for future expansion.
This means MARA is converting its previously accumulated Bitcoin reserves into more stable power and infrastructure assets to support its next phase of business expansion.
Reduce mining rig expansion and invest in AI data centers.
The company disclosed that it does not expect to make large-scale purchases of new ASIC miners in the future. This differs significantly from the approach during the previous cycle, when mining companies relied on continuous machine purchases to expand their hash rate.
In addition to acquiring power assets, MARA is collaborating with Starwood Capital to convert part of its mining facilities into AI and high-performance computing data centers, reducing its reliance on block rewards for revenue.
The company disclosure also indicates that approximately 90% of its non-hosted mining capacity could ultimately be redirected to support AI and IT infrastructure. For MARA, this shift means the company will future operate at the intersection of two power-intensive industries—Bitcoin mining and AI computing—allocating electricity resources based on returns.
Additional information: If the Long Ridge transaction is completed, MARA’s asset structure will further shift from “coin holding + mining” to “power + computing infrastructure,” one of the common transition paths among North American mining companies in recent years.