Marathon Digital (NASDAQ:MARA) Announces Earnings Results

Marathon Digital (NASDAQ:MARA) announced its quarterly earnings data on Thursday. The business services provider reported ($1.60) earnings per share (EPS) for the quarter, missing analysts’ consensus estimates of $0.17 by ($1.77), FiscalAI reports. The company had revenue of $174.88 million for the quarter, compared to the consensus estimate of $209.44 million. Marathon Digital had a negative net margin of 429.71% and a negative return on equity of 22.55%. The firm’s quarterly revenue was down 26.7% compared to the same quarter last year. During the same period last year, the business posted $1.84 earnings per share.

Here are the key takeaways from Marathon Digital’s conference call:

• MARA expects its power portfolio to reach approximately 4.8 gigawatts after completing the Long Ridge transaction and securing the Matagorda County, Texas site, which could support up to 2 gigawatts subject to approvals.
• The company said Long Ridge is expected to contribute approximately $144 million in annualized EBITDA, with roughly 70% of its power output covered by long-term contracts. MARA also said tenant demand for its AI infrastructure sites has exceeded initial expectations and that it remains confident of signing at least two leases by year-end.
• Second-quarter revenue fell to $174.9 million from $238.5 million a year earlier, while MARA reported a $611.3 million net loss, primarily reflecting lower Bitcoin prices and a $343 million unrealized digital-asset mark-to-market loss.
• MARA expanded borrowings by $600 million through Bitcoin-backed credit facilities at a weighted average cost of 7.56% and expects to assume about $900 million of Long Ridge debt. The financing is non-dilutive but increased the share of its Bitcoin holdings pledged as collateral to 54%.
• Mining efficiency continued to improve: energized hashrate rose 22% year over year to 70.3 exahash per second, while daily operating cost per petahash declined 4% to $27.7. The company expects the expiration of hosted-mining agreements beginning in 2027 to reduce third-party hosting costs over time.

Marathon Digital Trading Down 5.3%

NASDAQ:MARA traded down $0.56 during trading hours on Friday, hitting $10.09. The company had a trading volume of 56,436,030 shares, compared to its average volume of 47,364,900. The company has a debt-to-equity ratio of 0.99, a current ratio of 1.84 and a quick ratio of 1.84. The stock has a 50-day moving average price of $12.81 and a 200 day moving average price of $11.03. The company has a market capitalization of $3.85 billion, a PE ratio of -1.10 and a beta of 5.40. Marathon Digital has a 52 week low of $6.66 and a 52 week high of $23.45.

Wall Street Analyst Weigh In

Several analysts have weighed in on MARA shares. Morgan Stanley lowered their price objective on Marathon Digital from $7.00 to $5.50 and set an “underweight” rating for the company in a research report on Wednesday, July 8th. Citizens Jmp started coverage on shares of Marathon Digital in a report on Wednesday, June 24th. They issued a “market outperform” rating and a $24.00 target price on the stock. Cantor Fitzgerald decreased their target price on shares of Marathon Digital from $14.00 to $12.00 and set an “overweight” rating on the stock in a research note on Friday. BTIG Research reiterated a “buy” rating and set a $27.00 price target on shares of Marathon Digital in a report on Monday, June 1st. Finally, Rosenblatt Securities reissued a “buy” rating and set a $15.00 price target on shares of Marathon Digital in a research report on Friday. Eight analysts have rated the stock with a Buy rating, two have assigned a Hold rating and two have given a Sell rating to the company’s stock. Based on data from MarketBeat, the stock has a consensus rating of “Moderate Buy” and a consensus target price of $18.72.

Marathon Digital News Roundup

Here are the key news stories impacting Marathon Digital this week:

• Positive Sentiment: AI and data-center expansion offers a potential catalyst. MARA said it is targeting at least two artificial-intelligence/high-performance-computing leases by year-end and has doubled its power capacity to 4.8 gigawatts. Needham cited stronger tenant demand through MARA’s Starwood partnership, although it withheld a price target pending more detail on the venture’s economics. MARA targets AI/HPC leases
• Positive Sentiment: Some analysts still see substantial upside. Rosenblatt reaffirmed a “buy” rating with a $15 price target, while Cantor Fitzgerald maintained an “overweight” rating despite reducing its target to $12. Both targets remain above the current trading level. Analyst rating updates
• Neutral Sentiment: Options activity was unusually elevated. Traders purchased approximately 250,000 MARA call options, about 14% above average daily call volume. This may indicate speculative bullish positioning, but it does not necessarily represent sustained investor conviction.
• Negative Sentiment: Second-quarter results missed expectations. MARA reported a $611.3 million net loss, revenue of $174.9 million versus roughly $209.4 million expected, and a year-over-year revenue decline of about 27%. Per-share results also came in below consensus, reinforcing concerns about profitability. MARA reports Q2 loss
• Negative Sentiment: Bitcoin production and holdings remain pressure points. MARA’s Bitcoin holdings reportedly fell 29% year over year to 35,577 Bitcoin. Investors are concerned that weaker mining economics and large quarterly losses could limit the benefit of higher Bitcoin prices. MARA Bitcoin holdings and Q2 loss
• Negative Sentiment: Price-target reductions added to selling pressure. The broader Bitcoin-mining group declined as analysts cut targets and investors prioritized Q2 losses over Bitcoin’s rebound. MARA’s high volatility amplifies the impact of disappointing results and analyst revisions. MARA stock and price-target cuts

Insider Activity at Marathon Digital

In other news, CFO Salman Hassan Khan sold 16,000 shares of the firm’s stock in a transaction dated Monday, May 18th. The shares were sold at an average price of $12.00, for a total value of $192,000.00. Following the completion of the sale, the chief financial officer directly owned 425,066 shares of the company’s stock, valued at approximately $5,100,792. This trade represents a 3.63% decrease in their position. The transaction was disclosed in a document filed with the SEC, which is accessible through the SEC website. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, CEO Frederick G. Thiel sold 27,505 shares of Marathon Digital stock in a transaction dated Wednesday, June 17th. The shares were sold at an average price of $14.25, for a total transaction of $391,946.25. Following the sale, the chief executive officer directly owned 4,562,009 shares in the company, valued at $65,008,628.25. The trade was a 0.60% decrease in their position. The disclosure for this sale is available in the SEC filing. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Insiders have sold a total of 109,260 shares of company stock valued at $1,452,756 over the last quarter. Company insiders own 0.97% of the company’s stock.

Institutional Inflows and Outflows

A number of hedge funds and other institutional investors have recently made changes to their positions in MARA. Integrated Wealth Concepts LLC raised its holdings in Marathon Digital by 9.8% in the first quarter. Integrated Wealth Concepts LLC now owns 11,073 shares of the business services provider’s stock worth $127,000 after purchasing an additional 991 shares in the last quarter. Osaic Holdings Inc. boosted its holdings in shares of Marathon Digital by 38.6% during the 2nd quarter. Osaic Holdings Inc. now owns 4,816 shares of the business services provider’s stock valued at $76,000 after buying an additional 1,340 shares in the last quarter. United Services Automobile Association boosted its holdings in shares of Marathon Digital by 8.2% during the 1st quarter. United Services Automobile Association now owns 20,634 shares of the business services provider’s stock valued at $257,000 after buying an additional 1,569 shares in the last quarter. NewEdge Advisors LLC grew its position in shares of Marathon Digital by 19.6% in the 4th quarter. NewEdge Advisors LLC now owns 11,053 shares of the business services provider’s stock worth $99,000 after buying an additional 1,811 shares during the period. Finally, CI Investments Inc. grew its position in shares of Marathon Digital by 17.1% in the 4th quarter. CI Investments Inc. now owns 12,563 shares of the business services provider’s stock worth $113,000 after buying an additional 1,830 shares during the period. Hedge funds and other institutional investors own 44.53% of the company’s stock.

About Marathon Digital

Marathon Digital Holdings, Inc is a digital asset technology company specializing in the mining and acquisition of bitcoin. Headquartered in Las Vegas, Nevada, the firm employs high-performance application-specific integrated circuit (ASIC) miners and proprietary software to secure the Bitcoin network and expand its crypto-mining footprint. Marathon Digital focuses on operational efficiency and scalability, while maintaining rigorous standards for regulatory compliance and corporate governance.

The company operates multiple large-scale mining facilities throughout North America, including sites in Texas, Montana and New York.