Shares of MARA Holdings (NASDAQ:MARA) climbed 6.4% to $12.42 during early Nasdaq trading on Monday, extending the stock's two-session gain to 16.1%. The rally came as the broader market focused on artificial intelligence infrastructure deals announced by competitors Hut 8 (NASDAQ:HUT) and IREN (NASDAQ:IREN), which together secured billions in new contracts.
Hut 8 revealed a second 352-megawatt lease valued at $9.8 billion over 15 years, boosting its contracted AI capacity to 949 megawatts and its total base-term contract value to $26.6 billion. IREN, meanwhile, signed $2.8 billion in new long-term AI contracts, bringing approximately 85% of its year-end annualized run-rate target—which exceeds $4 billion—under contract.
MARA's Power Portfolio Raises Questions
MARA presents a contrasting picture. The company reports a potential power portfolio totaling 4.8 gigawatts, but its most recent Texas filing revealed no tenant lease for its Matagorda facility. While the filing noted that potential tenants have expressed interest, investors are increasingly favoring firms with secured demand over those with merely stated capacity.
Chief Executive Fred Thiel argued on July 9 that “sites with access to reliable, scalable power will become increasingly valuable.” Monday's agreements from Hut 8 and IREN support that thesis but also set a higher bar for proof. MARA management aims to secure at least one tenant lease by year-end, and the company will disclose contracted megawatts as pipeline agreements close.
Market Context and Valuation
At 1:56 p.m. EDT, MARA shares were up 6.4% at $12.42, with a market capitalization of $4.73 billion. That valuation represents roughly 39% of Hut 8’s $12.08 billion and 34% of IREN’s $13.94 billion, reflecting the discount investors apply to uncontracted power. Bitcoin rose 1.1% during the session, providing limited support.
MARA maintains significant exposure to cryptocurrency. As of March 31, the company held 35,303 bitcoin and $513.7 million in cash reserves. First-quarter revenue declined 18% to $174.6 million, and the company reported a net loss of $1.3 billion, which included a $1 billion fair-value loss on bitcoin.
Risks and Milestones Ahead
The Matagorda project remains subject to regulatory approvals, completion of construction, and securing a tenant agreement. The total consideration could reach up to $600 million, contingent on achieving development milestones, including a data-center lease with a third party. The Texas facility may reach one gigawatt of output by October 2027, with potential to expand to two gigawatts by April 2028. Including the pending Long Ridge project, MARA’s potential portfolio could grow to 4.8 gigawatts.
For now, investors face a clear test: details on signed megawatts and financing terms would allow for more straightforward comparisons. In their absence, MARA’s valuation will continue to rely heavily on peer contract benchmarks.
