Shares of MARA Holdings (NASDAQ: MARA) climbed roughly 7% to $13.315 during Wednesday morning trading, as bitcoin stabilized near $77,357 and the broader crypto-linked infrastructure sector saw gains. The move higher came despite a bearish analyst call from Morgan Stanley, which lowered its price target on the stock to $7 from $8.50 and maintained an underweight rating.
The downgrade drew a sharp public response from MARA's vice president of investor relations, Robert Samuels, who took to X to challenge the analyst's assumptions. Samuels specifically contested the math behind Morgan Stanley's assessment of the company's Starwood data-center joint venture, noting that the analyst was waiting for signed leases before assigning more value—a common hurdle for miners transitioning to AI hosting.
Morgan Stanley's report, as cited by Stocktwits, assigns only a 10% probability that MARA's pipeline megawatts will convert to real power until formal lease agreements are signed. Samuels countered that MARA will not invest in AI infrastructure without secured tenants, and CEO Fred Thiel expects to have AI tenants in place before year-end.
MARA is actively repositioning itself from a volatile bitcoin miner to a power-and-data-center operator, aiming to capitalize on surging demand for AI and high-performance computing infrastructure. The company's strategy gained traction last month with the announcement of a $1.5 billion deal to acquire Long Ridge Energy & Power from FTAI Infrastructure, including a 505-megawatt gas plant in Hannibal, Ohio, and over 1,600 acres for a planned data-center campus. Thiel has expressed confidence that the site has all the key components for an ideal data center and expects to sign a hyperscaler tenant upon deal closure.
However, the company's financials remain under pressure. First-quarter revenue fell roughly 18% year-over-year to $174.6 million, while the net loss attributable to common stockholders widened to approximately $1.26 billion, or $3.31 per share. These figures underscore the challenges MARA faces as it navigates its transformation. As of March 31, MARA held 35,303 bitcoin, with nearly 10,000 either loaned or used as collateral, and sold about 20,880 bitcoin during the quarter, generating $1.5 billion in proceeds.
Key risks remain, including potential bitcoin price declines, extended lease negotiations, and regulatory hurdles for the Long Ridge deal. The transaction requires approvals under the Hart-Scott-Rodino Act and from the Federal Energy Regulatory Commission, and could close as late as the second half of 2026. If these risks materialize, investors may refocus on MARA's crypto holdings and volatile financials.
Shares of other crypto-mining infrastructure stocks also rose Wednesday, with Riot Platforms (NASDAQ: RIOT) up 5.1%, Cipher Digital (NASDAQ: CIFR) advancing 5.9%, and TeraWulf (NASDAQ: WULF) gaining 2.2%. The broader tech sector also saw gains, with the Nasdaq Composite rising 0.43% ahead of Nvidia's earnings, which are viewed as a key test for AI infrastructure demand.
Trading volume in MARA shares topped 18 million by late morning, reflecting heightened investor interest amid the conflicting signals of a bullish price move and a bearish analyst call.
