Simply put
- Mara experienced a net loss of $533 million, largely attributed to fluctuations in Bitcoin valuations.
- While revenues did increase by 30% from last year to $214 million, this still fell short of expectations.
- Mining output dropped by 19%, leading to reduced block rewards, even though the hashrate doubled following the Bitcoin halving in 2024.
On Thursday, Bitcoin miner Mara Holdings announced a significant net loss of $533 million for the first quarter of this year, despite setting records for Bitcoin accumulation and showing solid year-on-year growth.
The company’s Q1 revenue climbed by 30% to reach $214 million, with Bitcoin holdings surging to 47,531 BTC—up 174% from the previous year’s 17,320 BTC.
Nonetheless, these results fell below Wall Street’s expectations. The net income loss rose from $337 million (or $1.26 per share) last year to $533 million ($1.55 per share) this year.
“We are a growth company, but we’re not making any sacrifices,” said CEO Fred Thiel in a letter to shareholders. He emphasized, “Our goal is not to chase any [Exahash] number.”
The outcome? Even as Bitcoin holdings nearly tripled, the company still faced hefty losses.
At the same time, Bitcoin production decreased by 19% year-on-year, totaling 2,286 BTC in the first quarter, largely due to reduced mining rewards following last year’s Bitcoin halving.
Thiel views Bitcoin as “the most optimal macrohedge in uncertain environments,” especially as Mara is undergoing transformation into a vertically integrated digital energy and infrastructure company.
We’ve reached out to Mara Holdings for further information.
Paper loss
The substantial quarterly losses for Mara were mainly a result of a $510 million negative adjustment to the fair value of its Bitcoin investments, as the price dropped from $93,354 to $82,534 during the quarter.
The recent approval of Crypto Accounting Standards in 2023 has altered the way Mara reports its Bitcoin holdings.
Instead of the previous cost method, the company now evaluates cryptocurrency at fair market value at the end of each reporting period, affecting net profit directly. This has led to significant paper losses, despite being a non-cash event.
As of the end of Q1, the company maintained a solid liquidity position, holding $199 million in cash and approximately $4.1 billion in cash and digital assets.
“We believe sticking to our strategy will eventually lead to greater value creation for our shareholders,” Thiel noted.
