MARA Holdings (MARA) still produces Bitcoin, but it’s becoming increasingly difficult to argue that mining is its core business.
The company said in its first-quarter income statement that it does not plan to make any major purchases of specialized ASIC machines used in the process. Historically, the easiest way to read a miner’s growth plan is through large purchases. Less appetite for new machines means less focus on expanding pure mining capacity.
Instead, the company’s power strategy is increasingly geared toward AI and high-performance computing. The company wants to be able to deploy new infrastructure alongside its existing mining operations and generate Bitcoin revenue while maintaining the option to direct power to AI and critical IT loads as demand matures.
About 90% of MARA’s non-hosted mining capacity could eventually be used for AI and IT infrastructure, the company said.
The company announced Monday that first-quarter sales were $174.6 million, down 18% from a year earlier. The net loss widened to $1.3 billion, mainly related to unrealized losses on 38,689 Bitcoins. The largest cryptocurrency has fallen 17% in 12 months.
MARA said it sold $1.5 billion worth of Bitcoin during the quarter to improve liquidity and eliminate debt. This includes a $1.1 billion sale near the end of the quarter to fund convertible debt repurchases. As a result, MARA has dropped two spots to become the fourth-largest listed holder of Bitcoin, according to Bitcoin US Treasury data included in the filing.
Public miners spent much of the last cycle being evaluated based in part on how much Bitcoin they could mine and hold. MARA currently uses Bitcoin as a balance sheet instrument when necessary, demonstrating a different set of priorities.
The shift in strategy is already being backed up by deals. MARA, in partnership with Starwood Capital, has agreed to acquire Long Ridge Energy & Power, a gas-fired power plant and data center campus in Ohio, in a $1.5 billion deal. The company says the site will eventually be able to support more than 600 megawatts of AI load.
Mining increased in the quarter. The activated hashrate rose 33% year over year to 72.2 exahashes per second, with MARA mining 2,247 Bitcoins, up from 2,011 Bitcoins in the previous quarter.
Bitcoin mining is clearly useful for the company, but it may no longer be its core business.
