Marathon Digital (NASDAQ:MARA) Issues Quarterly Earnings Results

Marathon Digital (NASDAQ:MARA) released its earnings results on Thursday. The business services provider reported ($4.52) earnings per share (EPS) for the quarter, missing analysts’ consensus estimates of ($0.23) by ($4.29), FiscalAI reports. The business had revenue of $202.31 million for the quarter, compared to analyst estimates of $250.74 million. Marathon Digital had a net margin of 100.82% and a negative return on equity of 2.59%. The business’s revenue for the quarter was down 5.6% on a year-over-year basis. During the same quarter in the previous year, the company posted $1.24 earnings per share.

Here are the key takeaways from Marathon Digital’s conference call:

• The company announced a Starwood Digital Ventures joint venture to develop AI/HPC data centers on MARA’s power-rich sites, targeting >1 GW near-term with a pathway to >2.5 GW and the option to retain up to 50% ownership, which should accelerate hyperscaler tenancy and access to institutional capital.
• MARA completed acquisition of a 64% stake in Exaion, gaining sovereign/private-cloud and enterprise AI capabilities (particularly in Europe) to pursue regulated and edge inference workloads that complement the Starwood partnership.
• Q4 produced a reported net loss of $1.7 billion driven largely by a $1.5 billion fair-value write-down on digital assets and an $82.8 million non‑cash goodwill impairment, highlighting material earnings volatility tied to Bitcoin price moves.
• Operational scale and cost efficiency improved — energized hash rate rose ~25% to 66.4 EH/s, Bitcoin holdings increased ~20% to ~53,822 BTC, site cost/kWh was ~$0.04, and petahash-per-day costs improved year-over-year, supporting lower mining costs and flexibility to monetize BTC opportunistically.

Marathon Digital Stock Down 1.4%

Shares of NASDAQ:MARA traded down $0.12 during trading on Thursday, hitting $8.45. 49,549,697 shares of the company’s stock traded hands, compared to its average volume of 46,086,600. The company has a current ratio of 2.09, a quick ratio of 2.09 and a debt-to-equity ratio of 0.63. The company has a 50-day moving average price of $9.35 and a 200-day moving average price of $13.54. Marathon Digital has a 52 week low of $6.66 and a 52 week high of $23.45. The company has a market cap of $3.20 billion, a price-to-earnings ratio of 4.69 and a beta of 5.56.

Key Headlines Impacting Marathon Digital

Here are the key news stories impacting Marathon Digital this week:

• Positive Sentiment: Marathon announced a strategic AI/infrastructure venture (Starwood partnership) to convert power capacity into AI and HPC data‑center capacity — a potential new, higher‑margin revenue stream that helps de‑correlate the business from Bitcoin price swings. Marathon Digital surges 13% on AI infrastructure venture
• Positive Sentiment: Sector momentum — including strong daily inflows into Bitcoin ETFs — lifted miner stocks and supported MARA into the session’s close/after‑hours. This flow backdrop can amplify positive news for miners. Trump-Linked Miner Reports Results, MARA Surges On AI Partnership
• Neutral Sentiment: Brokerage consensus remains constructive (consensus “Moderate Buy”), which could limit downside if execution on the AI pivot and mining operations track to plan. MARA Receives Consensus Rating of “Moderate Buy”
• Neutral Sentiment: The company issued its preliminary Q4/fiscal‑2025 results letter to shareholders (formal release/slide deck available), providing the official metrics investors are parsing. MARA Announces Fourth-Quarter and Fiscal Year 2025 Results
• Negative Sentiment: Quarterly results showed a steep EPS miss: reported loss per share of ($4.52) vs. consensus (~($0.23)), and revenue of $202.3M below estimates — driven largely by non‑cash markdowns on held Bitcoin. These accounting hits pressured the stock intraday. View Slide Deck
• Negative Sentiment: Analysts and press flagged increased scrutiny of Marathon’s Bitcoin‑centric strategy and accounting volatility — a reminder that large paper impairments and macro/trade uncertainty can produce outsized headline moves. Marathon Digital earnings loom as bitcoin strategy draws scrutiny

Insider Activity at Marathon Digital

In other news, CEO Frederick G. Thiel sold 27,505 shares of the stock in a transaction on Tuesday, February 17th. The shares were sold at an average price of $7.66, for a total transaction of $210,688.30. Following the completion of the sale, the chief executive officer owned 3,381,861 shares of the company’s stock, valued at $25,905,055.26. This represents a 0.81% decrease in their ownership of the stock. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which is available at this hyperlink. Also, CFO Salman Hassan Khan sold 16,000 shares of the business’s stock in a transaction on Tuesday, February 17th. The shares were sold at an average price of $7.66, for a total transaction of $122,560.00. Following the completion of the sale, the chief financial officer directly owned 359,165 shares in the company, valued at $2,751,203.90. This represents a 4.26% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. Insiders have sold a total of 133,247 shares of company stock worth $1,325,255 over the last 90 days. Corporate insiders own 0.80% of the company’s stock.

Hedge Funds Weigh In On Marathon Digital

A number of large investors have recently added to or reduced their stakes in MARA. Integrated Wealth Concepts LLC lifted its holdings in shares of Marathon Digital by 9.8% in the first quarter. Integrated Wealth Concepts LLC now owns 11,073 shares of the business services provider’s stock valued at $127,000 after purchasing an additional 991 shares in the last quarter. NewEdge Advisors LLC lifted its stake in Marathon Digital by 65.3% in the 1st quarter. NewEdge Advisors LLC now owns 7,672 shares of the business services provider’s stock valued at $88,000 after acquiring an additional 3,032 shares in the last quarter. United Services Automobile Association lifted its stake in Marathon Digital by 8.2% in the 1st quarter. United Services Automobile Association now owns 20,634 shares of the business services provider’s stock valued at $257,000 after acquiring an additional 1,569 shares in the last quarter. UBS AM A Distinct Business Unit of UBS Asset Management Americas LLC boosted its position in Marathon Digital by 11.0% during the 1st quarter. UBS AM A Distinct Business Unit of UBS Asset Management Americas LLC now owns 643,311 shares of the business services provider’s stock worth $7,398,000 after acquiring an additional 63,903 shares during the last quarter. Finally, Envestnet Asset Management Inc. bought a new position in shares of Marathon Digital during the 2nd quarter worth approximately $183,000. Institutional investors own 44.53% of the company’s stock.

Wall Street Analysts Forecast Growth

Several brokerages recently weighed in on MARA. Rosenblatt Securities cut their price objective on shares of Marathon Digital from $25.00 to $22.00 and set a “buy” rating on the stock in a report on Wednesday, November 5th. JPMorgan Chase & Co. dropped their target price on shares of Marathon Digital from $20.00 to $13.00 and set an “overweight” rating for the company in a research report on Monday, November 24th. Cantor Fitzgerald reduced their price target on Marathon Digital from $30.00 to $21.00 and set an “overweight” rating on the stock in a research report on Wednesday, November 5th. Morgan Stanley began coverage on Marathon Digital in a research note on Monday, February 9th. They set an “underweight” rating and a $8.00 price objective for the company. Finally, Weiss Ratings raised Marathon Digital from a “sell (d+)” rating to a “hold (c-)” rating in a research note on Friday, February 20th. Eight investment analysts have rated the stock with a Buy rating, four have assigned a Hold rating and one has given a Sell rating to the company’s stock. According to MarketBeat, the company presently has an average rating of “Moderate Buy” and a consensus price target of $21.00.

Marathon Digital Company Profile

Marathon Digital Holdings, Inc is a digital asset technology company specializing in the mining and acquisition of bitcoin. Headquartered in Las Vegas, Nevada, the firm employs high-performance application-specific integrated circuit (ASIC) miners and proprietary software to secure the Bitcoin network and expand its crypto-mining footprint. Marathon Digital focuses on operational efficiency and scalability, while maintaining rigorous standards for regulatory compliance and corporate governance.

The company operates multiple large-scale mining facilities throughout North America, including sites in Texas, Montana and New York.