MARA Holdings, Inc. (NASDAQ:MARA) saw its shares trade nearly flat in after-hours activity on Thursday, following the release of preliminary second-quarter results that fell short of Wall Street expectations. The stock closed the regular session at $10.65, down 5.25%, and has declined 5.9% over the past five trading sessions.
The Bitcoin miner reported preliminary revenue of $174.9 million for the quarter ended June 30, a 27% decrease from the $238.5 million reported in the same period last year. This figure came in approximately 16.5% below the consensus estimate of $209.4 million. The company also posted a net loss of $611.3 million, which included a $343 million fair-value loss on its Bitcoin holdings.
Despite the revenue shortfall, MARA has been actively restructuring its balance sheet. The company secured $750 million in new and refinanced Bitcoin-backed loan facilities, initially collateralized by 18,750 Bitcoin. This represents about 52.7% of its Bitcoin reserves as of June 30, when the company held 35,577 BTC. Based on Thursday's Bitcoin price of approximately $64,312, the collateral was valued at roughly $1.21 billion, implying a gross initial loan-to-value ratio of about 62%.
The financing strategy is designed to support MARA's expansion into power and artificial intelligence infrastructure, as well as to fund acquisitions. The company recently announced a $1.5 billion enterprise value acquisition of Long Ridge, which it expects to contribute $144 million in annualized EBITDA. This implies a multiple of 10.4 times, and the deal is still pending approval from the Federal Energy Regulatory Commission (FERC).
MARA's operational metrics showed mixed results. While energized hashrate increased 22% year-over-year to 70.3 EH/s, Bitcoin production grew only 3% to 2,422 coins. The cost of purchased energy per Bitcoin rose 15% to $38,690, reflecting network difficulty increases that outpaced hashrate growth. The company sold 23,093 Bitcoin in the first half of the year, nearly five times its mined output of 4,669 coins.
Chief Financial Officer Salman Khan explained the financial strategy, stating, "We are funding a $1.5 billion enterprise value acquisition through Bitcoin-backed debt and assumption of Long Ridge's balance sheet." Management projects that Long Ridge will bring $144 million in annualized EBITDA, with approximately 70% of its energy output already under contract.
Chief Executive Fred Thiel emphasized the company's focus on monetizing its power assets, saying, "The foundation has been built. Our focus now is monetizing it." The company's power portfolio has the potential to expand to 4.8 gigawatts, subject to necessary approvals, and management expects to secure at least two customer leases before the end of the year.
In the broader market, Bitcoin was trading around $64,300 late Thursday. Among MARA's peers, Riot Platforms (NASDAQ:RIOT) rose 5.2% over the past five sessions, while IREN Limited (NASDAQ:IREN) gained 3.1%. CleanSpark (NASDAQ:CLSK) fell 7.3%, and MARA underperformed Riot and IREN but outpaced CleanSpark.
Analyst sentiment ahead of the earnings release was moderately positive, with nine Buy ratings, five Hold ratings, and one Sell rating. The median price target stood at $15.00, compared to the current price of $10.65, suggesting potential upside. However, these estimates may be revised following the earnings announcement.
Looking ahead, investors will closely monitor analyst updates, the timing of FERC approval for the Long Ridge acquisition, and the company's ability to secure customer leases. Risks include a decline in Bitcoin prices, which would reduce collateral value, potential delays in the Long Ridge project, and continued increases in network difficulty that could keep mining costs elevated.
