MARA Holdings Second Quarter Revenue Falls 27 Percent
MARA Holdings mined 2,422 bitcoin in the second quarter, but lower coin prices drove revenue down to $174.9 million.
MARA Holdings mined 2,422 bitcoin in the second quarter, a slight increase from the same period a year earlier, according to Yahoo Finance. Despite the rise in production, quarterly revenue fell 27% to $174.9 million as the average price of each coin produced was lower.
The revenue drop highlights the company's ongoing effort to diversify beyond bitcoin mining. MARA now describes itself as an owner of power-ready land and electricity, aiming to rent capacity to artificial intelligence companies. However, mining operations continue to fund the business while no artificial intelligence customer has signed a lease.
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Financial Results and Asset Valuation
The company reported a net loss of $611.3 million in the second quarter, with $343.0 million stemming from marking its bitcoin holdings down to market value. MARA held 35,577 coins at the end of the quarter, representing a 29% decline after taking on $600.0 million in new bitcoin-backed loans to help fund the Long Ridge power plant.
Over the past 12 months, MARA lost $3.46 billion on $804.22 million in sales. Short interest in the stock stands at 29.84% of shares outstanding, while institutional interest edged up slightly with 27 hedge funds holding shares in the second quarter, compared to 25 in the first quarter.
Power Infrastructure Plans
Management is awaiting regulatory approval for Long Ridge, a power plant where over 70% of output is sold under long-term contracts. Combined with rights secured for a powered land site in Matagorda County, Texas, the projects could lift MARA's power portfolio to 4.8 gigawatts.
Management told shareholders it remains confident of securing at least one lease agreement before the end of the year in partnership with Starwood.
Key facts
- MARA mined 2,422 bitcoin in the second quarter.
- Quarterly revenue dropped 27% to $174.9 million.
- The company posted a net loss of $611.3 million, including $343.0 million in paper losses on bitcoin holdings.
- Total bitcoin holdings fell 29% to 35,577 coins after the company took on $600.0 million in new loans.
Source: news.google.com
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