MARA Holdings, Inc. (MARA)·Q2 2025 Earnings Summary

Executive Summary

• Record-setting quarter: Revenue $238.5M (+64% YoY), Diluted EPS $1.84, Net income $808.2M, Adjusted EBITDA ~$1.245B; driven primarily by a $1.2B unrealized gain on digital assets as BTC ended Q2 at $107,173 .
• Consensus beat: Revenue ($238.5M vs $226.6M*), EPS ($1.84 vs $0.18*), and EBITDA (~$1.185B vs ~$438M*); the magnitude reflects non-operating fair value gains and activated BTC asset strategies rather than purely core operations . Values retrieved from S&P Global.*
• Strategic progress: Energized hashrate reached 57.4 EH/s, cost per petahash/day improved to $28.7, purchased energy cost/ BTC fell to $33,735; MARA reiterated year-end target of 75 EH/s and advanced AI partnerships (TAE Power Solutions, PADO AI) and behind-the-meter wind farm build-out .
• Balance sheet flexibility: Closed $950M 0.00% convertible notes (with up to $200M greenshoe) post quarter; combined unrestricted cash plus BTC ~$5.4B at Q2-end; 31% of BTC holdings “activated” via lending/structured strategies to generate yield .
• Likely stock catalysts: Continued BTC price moves (management flagged “frothy” conditions), delivery of 75 EH/s by YE, wind farm energization in H2, and progress on sovereign/AI infrastructure initiatives (Saudi Arabia HQ and European HQ in Paris) .

What Went Well and What Went Wrong

What Went Well

• “Record-setting quarter” across revenues, Adjusted EBITDA, net income, hashrate, fleet efficiency, and blocks produced in a single month (May) .
• BTC holdings reached 49,951 at quarter-end (subsequently surpassed 50,000), positioning MARA as the second-largest corporate public holder of bitcoin; 31% of holdings were “activated” via lending/structured strategies to generate incremental returns .
• Strategic partnerships with TAE Power Solutions and LG-backed PADO AI to co-develop grid-responsive, load-balancing platforms for next-gen AI infrastructure; build-out of the behind-the-meter data center at the Texas wind farm continued, targeting H2 energization .

What Went Wrong

• Cost structure still impacted by third-party hosting and other energy costs ($69.0M, +$15.0M YoY) despite ongoing vertical integration; G&A expenses excluding SBC rose to $40.1M (+$14.9M YoY) as scale increased .
• Earnings quality considerations: Net income was heavily driven by $1.2B gain on fair value of digital assets (including BTC receivable), highlighting sensitivity of GAAP results to BTC price moves; management noted a $10,000 BTC price change could swing earnings by ~$500M .
• Seasonality/curtailment: Production mix fluctuated, with strong May offset by more curtailment in June due to Texas summer dynamics; underscores operational exposure to seasonality and grid conditions .

Financial Results

Trend Comparison (YoY and Seq)

Values retrieved from S&P Global for margin rows.*

Actual vs Consensus (Q2 2025)

Values retrieved from S&P Global.*

KPIs

Note: Q2 2024 BTC/day not directly disclosed in Q2 2025 filing; YoY references captured via Q2 2025 shareholder letter .

Guidance Changes

Management emphasized use of proceeds for opportunistic BTC purchases, M&A, or buybacks/repaying debt, not funding day-to-day operations .

Earnings Call Themes & Trends

Management Commentary

• “Q2 was a record breaking quarter… Beyond performance, we continued to invest in infrastructure… strategic partnerships with TAE Power Solutions and PADO AI to… support the next generation of AI infrastructure.” — Fred Thiel, CEO .
• “We reported net income of $808.2 million or $1.84 per diluted share… We recorded a $1.2 billion gain on digital assets… purchased energy cost per Bitcoin… $33,735… cost per petahash per day improved 24% YoY.” — Salman Khan, CFO .
• “Shortly after quarter-end, MARA's bitcoin holdings surpassed 50,000 BTC, solidifying our position as the second-largest corporate public holder of bitcoin.” — Shareholder letter .

Q&A Highlights

• Strategy balance: MARA remains focused on Bitcoin mining while developing sovereign data/AI infrastructure, favoring partnerships with energy companies and governments; pipeline >3 GW; groundwork for regional HQ in Saudi Arabia and entity in France .
• Cost and uptime dynamics: Seasonal curtailment in Texas affected June; May was an exceptional month; luck randomness acknowledged; asset-heavy transition driving lower unit costs .
• Bitcoin treasury vs “treasury companies”: CEO warned of frothiness and potential market risks around new crypto treasury vehicles; MARA differentiates via earned BTC through mining and active asset management .
• Cost to mine per BTC: CFO estimated total company-level cash cost hovers around ~$50,000 per BTC today given mix of owned and legacy asset-light contracts; expects costs to decline as contracts expire and low-cost sites scale .
• Capital and guidance clarity: $950M 0% convert provides flexibility (BTC, M&A, debt); 75 EH/s by year-end largely funded with ~$150M miner capex remaining .

Estimates Context

• Revenue: $238.5M vs $226.6M consensus (11 estimates); operational beat driven by higher average BTC price and more blocks won . Values retrieved from S&P Global.
• EPS: $1.84 vs $0.18 consensus (7 estimates); outperformance primarily due to $1.2B gain on fair value of digital assets as BTC ended quarter at $107,173 . Values retrieved from S&P Global.
• EBITDA: ~$1.185B vs ~$438M consensus*; reflects same fair value dynamics and activated BTC strategies alongside cost improvements . Values retrieved from S&P Global.*
• Implication: Street estimates will likely need to incorporate greater sensitivity to BTC fair value impacts and asset management activation, while distinguishing core mining economics (unit costs, EH/s build-out) from mark-to-market drivers .

Key Takeaways for Investors

• EPS/EBITDA beats were largely non-operational (fair value BTC gains); durability depends on BTC trajectory—management estimates ~$500M earnings swing per $10,000 BTC price move .
• Cost trajectory positive: purchased energy cost/BTC fell to $33,735; cost per petahash/day improved to $28.7; vertical integration and behind-the-meter assets should continue lowering unit costs .
• Capacity scaling: On track for 75 EH/s by YE with ~$150M miner capex remaining; wind farm onsite DC expected to energize in H2—supports low-cost hash expansion .
• Balance sheet optionality: $950M convert (with up to $200M greenshoe) plus ~$5.4B combined cash/BTC at Q2-end create flexibility for BTC purchases, M&A, and debt actions; not for day-to-day funding .
• Strategic differentiation: Sovereign, energy-aware AI infrastructure and partnerships (TAE, PADO), plus custom miners and 2PIC tech, position MARA at the energy/compute intersection .
• Risk watch: Seasonality/curtailment in TX, exposure to third-party hosting costs (still $69.0M), and macro/tariff dynamics; CEO flagged “frothy” BTC conditions—monitor potential demand shifts .
• Near-term trading lens: Focus on BTC price path, confirmation of H2 wind farm energization, pace toward 75 EH/s, and any announced sovereign/AI infrastructure deals that could de-risk the narrative beyond mining .

Additional Materials Reviewed

• Q2 2025 8-K with shareholder letter and press release (full contents): financials, KPIs, capital actions and strategy .
• Q2 2025 earnings call transcript (full): prepared remarks and analyst Q&A on strategy, costs, guidance, macro –.
• Prior quarters:
  • Q1 2025 8-K shareholder letter and call: asset-heavy pivot, wind farm acquisition, off-grid economics, quarter-end BTC price loss; revenue $213.9M, net loss $(533.4)M – –.
  • Q4 2024 8-K shareholder letter: record full-year, EH/s 53.2, BTC holdings 44,893, Adjusted EBITDA $1.2B –.
• Subsequent press release: August 2025 production update—208 blocks, EH/s 59.4, BTC holdings 52,477; Exaion stake and European HQ in Paris (reinforces international expansion) .

Notes: Asterisk-marked values are retrieved from S&P Global.*