MARA Holdings (NASDAQ: MARA) ended Friday's session down 6.4% at $12.44, capping a weekly decline of approximately 3.9%. The selloff came amid broader weakness in bitcoin mining stocks, with peers like Riot Platforms (RIOT), CleanSpark (CLSK), and IREN also posting losses between 3.96% and 8.17%.
Debt Amendment Milestone
After the market close on Friday, MARA announced that holders of the 8.750% senior secured notes due 2032 issued by Long Ridge Energy & Power had delivered the necessary consents to amend the debt terms. The amendments are designed to prevent a mandatory change-of-control repurchase if the $1.5 billion acquisition of Long Ridge closes. The changes will only take effect if the deal is completed, the consent fee is paid, and other conditions are satisfied.
AI and HPC Strategy
The Long Ridge acquisition is central to MARA's strategy to reposition itself from a pure-play bitcoin miner to an energy-backed digital infrastructure company focused on artificial intelligence (AI) and high-performance computing (HPC). CEO Fred Thiel told Reuters that the Ohio property, which includes an operational 505-megawatt power plant, has all the key components for an ideal data center campus. Thiel added that MARA has already attracted interest from potential hyperscaler tenants and expects to secure a tenant as the deal progresses.
Q1 Financial Results
MARA's first-quarter report revealed revenue of $174.6 million, down from $213.9 million a year earlier, and a net loss of $1.26 billion, or $3.31 per share. The loss was driven by lower bitcoin prices and fair-value losses on digital assets. The company mined 2,247 bitcoin during the quarter, slightly below 2,286 in the year-ago period, with the average price per bitcoin falling to $76,288 from $93,317.
Bitcoin Sales and Holdings
During the quarter, MARA sold approximately 20,880 bitcoin at an average price of $70,137 each, generating about $1.5 billion in proceeds. As of March 31, the company held 35,303 bitcoin, of which 9,995 were loaned out or pledged as collateral. About 28% of its total bitcoin had been activated as part of its digital-asset management strategy.
Analyst Support
Rosenblatt analyst Chris Brendler raised his price target on MARA to $15 from $11, maintaining a Buy rating. Brendler described the Long Ridge deal as "another major step forward" in MARA's transformation, noting the asset is not a greenfield site but an operating power plant.
Market Context
Friday's decline in mining stocks occurred amid a broader market pullback, with the Dow falling 1.07%, the S&P 500 down 1.24%, and the Nasdaq declining 1.54%, as rising crude prices stoked inflation fears. Bitcoin was trading near $78,048 late Sunday in New York, setting the tone for Monday's open.
Risks Ahead
The Long Ridge deal remains subject to regulatory approvals, including Hart-Scott-Rodino antitrust clearance and sign-off from the Federal Energy Regulatory Commission. MARA expects to close in the second half of 2026, possibly as early as the third quarter, but the deal could be terminated if not completed by November 30, 2026, or by June 30, 2027, in certain regulatory circumstances. A breakup fee of $75 million could be triggered. Weaker bitcoin prices, higher power costs, or slow progress in signing AI tenants could further challenge MARA's equity story.
