Skip to content
    MARA
    Earnings call· Mar 2026(Q1 FY26)

    MARA Holdings Q1 FY26 earnings call MARA

    May 11, 2026 Source

    Executive summary

    MARA Q1 FY26 — Redefining as Digital Infrastructure Company with Strategic Acquisitions and Debt Reduction

    MARA executed a transformative quarter, strategically pivoting towards digital infrastructure by acquiring Exaion and Long Ridge, leveraging its energy-backed capacity for AI and critical IT workloads. The company also strengthened its balance sheet through significant debt reduction, funded by Bitcoin monetization rather than equity dilution. This shift aims to capitalize on the growing demand for AI compute while maintaining Bitcoin mining as a foundational operation.

    Highlights

    5

    • Retired approximately 30% of outstanding convertible debt, reducing potential dilution by ~46 million shares or 9%.

    • Acquired majority interest in Exaion and announced definitive agreement to acquire Long Ridge, adding 1.1 GW of total potential capacity.

    • Achieved record energized hashrate of 72.2 EH/s, a 33% increase year-over-year.

    • Maintained competitive cost per kilowatt hour of $0.04 for owned sites.

    • Secured a $785 million commitment letter for Long Ridge acquisition financing.

    Concerns

    5

    • Revenues declined to $174.6 million from $213.9 million year-over-year, primarily due to an 18% decrease in Bitcoin's average price.

    • Reported a net loss of $1.3 billion, largely driven by a $1 billion unrealized mark-to-market fair value adjustment for digital assets.

    • Adjusted EBITDA was negative $1 billion, also dominated by the Bitcoin mark-to-market change.

    • Incurred a restructuring charge of $45.9 million due to business realignment.

    • General and administrative expenses (excluding stock-based compensation) increased to $57.7 million from $36.9 million year-over-year.

    Guidance & targets

    2
    CategoryTargetConfidence
    AI build-out capacity
    200 megawatts
    high materiality
    High
    Quarterly G&A run rate (excluding SBC and acquisition costs)
    Below Q1 level
    medium materiality
    Medium

    Operational metrics

    32
    Convertible debt retired
    30%
    Q1 FY26

    Reduced outstanding convertible debt at a discount.

    Potential dilution reduction
    46 million shares9% on a fully diluted basis
    Q1 FY26

    Result of convertible debt retirement.

    Total Revenue
    $174.6 milliondown from $213.9 million in Q1 FY25
    Q1 FY26

    Primarily driven by 18% decrease in Bitcoin's average price.

    Revenue impact from Bitcoin price decrease
    $33.1 million
    Q1 FY26

    Due to 18% decrease in Bitcoin's average price.

    Revenue impact from lower production
    $2.5 million
    Q1 FY26

    Due to lower production.

    Other revenues decline
    $3.7 million
    Q1 FY26

    Primarily reflecting lower revenue from other digital asset hosting services.

    Energized hashrate
    72.2 EH/sup 33% from 54.3 EH/s in Q1 FY25
    Q1 FY26

    Reflects continued fleet optimization and deployment of new ASIC miners.

    New ASIC miners deployed
    2.4 EH/s
    Q1 FY26

    Deployed at favorable pricing.

    Share of available mining rewards
    5.5%up from 4.8% in Q4 FY25
    Q1 FY26

    Reflects increased hashrate.

    Bitcoin mined
    2,247 BTC39 fewer BTC than prior year period
    Q1 FY26

    Reflecting higher network difficulty, partially offset by higher hashrate.

    GAAP Net Loss
    $1.3 billionvs. $533.4 million loss in Q1 FY25
    Q1 FY26

    Explicitly included per user instruction, despite typically being omitted as a GAAP statement line.

    Unrealized mark-to-market adjustment (digital assets)
    $1 billion
    Q1 FY26

    Driven by drop in Bitcoin price, contributing to net loss.

    Bitcoin price sensitivity (fair value)
    $350 million
    N/A

    Impact on fair value of digital assets for every $10,000 change in Bitcoin price.

    Adjusted EBITDA
    -$1 billionvs. -$483.6 million in Q1 FY25
    Q1 FY26

    Dominated by Bitcoin mark-to-market change.

    Cost per kilowatt hour
    $0.04
    Q1 FY26

    Remains among the most competitive in the sector at a larger scale.

    Purchased energy cost per Bitcoin
    $40,047up from $35,728 in Q1 FY25
    Q1 FY26

    Primarily due to higher network difficulty driven by growth in global hashrate.

    Daily cost per petahash per day
    $27.6improved 3% YoY from $28.5 in Q1 FY25
    Q1 FY26

    Remains among the lowest at scale in the sector.

    G&A expense (ex-SBC)
    $57.7 millionvs. $36.9 million in Q1 FY25
    Q1 FY26

    Increase reflects scaling operations, higher personnel costs, and administrative fees for expanded global footprint.

    Acquisition and integration costs (G&A impact)
    $11 million
    Q1 FY26

    Burdened G&A expenses.

    Workforce reduction
    15%
    Q1 FY26

    Part of strategic shift towards AI and critical IT, realigning business operations.

    Restructuring charge
    $45.9 million
    Q1 FY26

    Due to elimination of certain business initiatives and realignment.

    Outstanding debt retired
    33%
    Q1 FY26

    Retired at a discount, reducing potential future dilution.

    Debt reduction funding source
    Bitcoin monetization
    Q1 FY26

    Used to fund a portion of debt reduction, not equity dilution.

    Bitcoin sold
    $1.5 billion
    Q1 FY26

    Funds used for debt reduction and line of credit reduction.

    Notes repurchased
    $1 billion
    Q1 FY26

    Face value of 2030 and 2031 notes repurchased at a discount.

    Line of credit reduction
    $200 million
    Q1 FY26

    Reduced using proceeds from Bitcoin sales.

    Line of credit refinanced
    $150 million
    Q1 FY26

    Refinanced at a lower interest rate.

    ATM program usage
    Not used
    Since Q3 FY25

    Operations and balance sheet actions funded through Bitcoin monetization instead of equity dilution.

    Bitcoin holdings
    35,303 BTCdown 12,228 BTC YoY
    End of Q1 FY26

    Decrease from previous year due to monetization for strategic priorities.

    Bitcoin loaned/pledged
    28%
    Q1 FY26

    Of total Bitcoin holdings, activated as loaned or pledged as collateral.

    Interest income from loaned Bitcoin
    $6.4 million
    Q1 FY26

    Generated from loaned Bitcoin holdings.

    Construction financing loan-to-value
    80%
    N/A

    Support for Starwood joint venture projects.

    Industry KPIs

    3
    MetricValueDetails
    Capacity CAPEX2.2 gigawattsGW
    Revenue growth$174.6 millionUSD
    Ai product adoption monetizationinitial 200 megawattsMW

    Deals & partnerships

    3
    ExaionAcquisition of a majority interest.

    Provides a pathway into sovereign, enterprise, and private cloud AI compute, particularly in Europe and Canada, addressing data sovereignty and cost control needs.

    Long Ridge Energy & Power (from FTAI Infrastructure)Definitive agreement to acquire Long Ridge Energy & Power.

    Strategic land and power acquisition to develop a premier compute campus, adding 1,600 acres to existing Hannibal operations. Includes a 505 MW gas turbine and existing 200 MW capacity at Hannibal. Plans to augment Hannibal interconnect and expand power capacity. Retains 25 full-time employees. Financing includes repaying Long Ridge's $400 million term loan, retaining Long Ridge's $600 million secured notes (pending consent), retaining the $115 million Can-Am facility, issuing approximately $185 million of tack-on secured notes. The remaining consideration is expected to be funded through a combination of cash on hand, borrowings collateralized by Bitcoin, and potentially proceeds from Bitcoin sales. A $785 million commitment letter backstopped by a bridge loan from Barclays has been secured.

    StarwoodStrategic partnership for data center development.

    Starwood brings global investment expertise, dedicated data center development platform, and EPC capabilities (design, development, construction, operations). Accelerates timeline for site evaluation and lease signing. Allows MARA to monetize powered land portfolio, preserve upside in cash flows, and manage capital exposure. Goal is to contribute sites repeatedly.

    Capital programs

    1
    Long Ridge AI build-outPlanned
    Funding: Combination of cash on hand, borrowings collateralized by Bitcoin, Bitcoin sales, and $785M commitment letter
    Start: H1 2027

    Benefit: 200 megawatts (initial)

    Initial phase of AI build-out at the Long Ridge campus, with construction beginning around the first half of 2027 and initial capacity coming online in mid-2028.

    Risks & headwinds

    3
    Bitcoin price volatilityQ1 FY26

    18% decrease in Bitcoin's average price in Q1 FY26, resulting in $33.1 million revenue reduction and $1 billion unrealized mark-to-market adjustment.

    Mitigation: Maintaining Bitcoin as a reserve asset and source of strategic financial flexibility, used selectively for balance sheet strengthening and strategic priorities. Focus on operating discipline, fleet efficiency, cost control, and capital allocation.

    Network difficulty increaseQ1 FY26

    Higher network difficulty level led to 39 fewer BTC mined YoY and increased purchased energy cost per Bitcoin to $40,047 from $35,728 YoY.

    Mitigation: Focus on fleet efficiency, cost control, and capital allocation to mitigate impact on mining economics.

    Integration and restructuring costsQ1 FY26

    $11 million in acquisition and integration costs burdened G&A in Q1 FY26; $45.9 million restructuring charge incurred.

    Mitigation: Workforce reduction of 15% providing $12 million annualized savings; expected G&A run rate (ex-SBC, acquisition costs) to trend below Q1 levels as savings are realized.

    What to watch in Q2 FY26

    4

    Contracted megawatts with Starwood JV

    by year-end
    Currentactive tenant discussions with multiple counterparties
    Targetmultiple tenant leases by year-end

    Why it matters

    Demonstrates execution of the capital-efficient digital infrastructure strategy and conversion of power assets into contracted revenue.

    We expect to sign multiple tenant leases by year-end. And as the pipeline converts, we'll disclose contracted megawatts.

    Q&A highlights

    6

    Is Long Ridge a one-off or part of a simultaneous approach to growth, combining existing site commercialization with opportunistic acquisitions?

    Long Ridge was a long-term strategic target. Future growth will combine smaller, modular sites for inference (akin to Bitcoin mining operations) and larger campus developments with Starwood for hyperscalers, leveraging MARA's power acquisition expertise and Starwood's development capabilities.

    “I think going forward, what you should see is you can think of us as doing -- focusing on a combination of small sites, which are perfect tuck-ins... At the same time, we're going to continue to look for larger land and power opportunities where we can build significant campuses together with Starwood.”

    asked by Paul Golding · answered by Frederick Thiel

    2 min read6 chapters

    Detailed Narrative

    01

    Strategic Pivot to Digital Infrastructure

    MARA is redefining itself as a digital infrastructure company, focusing on controlling and monetizing power for AI and critical IT loads. This strategy is driven by the conviction that control over power is the defining constraint for AI compute growth, positioning MARA to address this bottleneck with its energized capacity. The company aims to leverage its existing infrastructure and energy expertise to meet the accelerating demand for AI compute.

    02

    Long Ridge Acquisition

    The acquisition of Long Ridge Energy & Power is a strategic land and power acquisition, adding 1,600 acres and a path to grow existing 200 MW to over 1 GW. It establishes a leading AI HPC data center campus in the PJM interconnection, providing immediate access to operational infrastructure and generating $144 million of annualized adjusted EBITDA in H2 2025. This asset is considered a 'unicorn' due to its existing operational status and scalability, avoiding years of development time and billions in capital.

    03

    Starwood Joint Venture

    The partnership with Starwood provides a capital-efficient engine to convert MARA's powered land portfolio into institutional-grade digital infrastructure. Starwood brings global investment expertise, dedicated data center development platform, and EPC capabilities, accelerating timelines and building trust with hyperscale tenants. MARA receives equity credit for contributing sites, limiting incremental capital exposure and aiming for higher returns on capital than peers.

    04

    Exaion for Sovereign and Enterprise AI

    Exaion addresses the demand for sovereign, enterprise, and private cloud AI compute, particularly in Europe and Canada, where data sovereignty, jurisdictional compliance, and cost control are critical. This provides a distinct pathway into AI, complementing the hyperscale focus of the Starwood JV. Exaion builds on proven success in UAE, Finland, and Oman, with active discussions in France, Brazil, and Saudi Arabia.

    05

    Balance Sheet Strengthening and Capital Allocation

    MARA retired approximately 30% of its outstanding convertible debt at a discount, reducing potential dilution by ~46 million shares. This was funded by Bitcoin monetization, not equity dilution, demonstrating a disciplined approach to capital allocation and increasing financial flexibility for strategic opportunities. The company also refinanced $150 million of its line of credit at a lower interest rate.

    06

    Bitcoin Mining as Foundation

    Bitcoin mining remains the operational foundation, generating immediate revenue and preserving the option to redirect capacity towards AI and critical IT loads as opportunities mature. This flexibility is central to monetizing power and compute assets effectively. The company continues to believe Bitcoin is supported by institutional demand, creating a constructive setup over time⏳.

    AI-generated summary of the company’s earnings call. Not investment advice.