Bitcoin Miner MARA Stock Under Pressure Following $1.5 Billion Bitcoin Sell-Off
MARA Holdings nonetheless has in its coffers 35,303 Bitcoin valued at roughly $2.84 billion, making it the fourth largest company Bitcoin holder on the earth. But that place comes after the corporate offered a big chunk of its reserves — and traders took discover.
A Rough Quarter By The Numbers
MARA’s inventory dropped 5% throughout Tuesday’s buying and selling session, touching an intraday low of $11.74 earlier than closing round $12.65. After-hours buying and selling introduced one other 1.85% decline.
The sell-off adopted the discharge of the corporate’s first-quarter 2026 earnings, which confirmed a internet lack of $1.26 billion — greater than double the $533 million loss recorded in the identical interval final 12 months. Revenue got here in at $175 million, down 18% from a 12 months in the past, partly resulting from falling Bitcoin costs.
During the quarter, MARA sold 20,880 BTC value almost $1.5 billion. A big portion of these gross sales — 15,133 BTC offered between March 4 and March 25 for about $1 billion — went towards shopping for again convertible notes.
About $1 billion of the proceeds had been used to cut back the corporate’s convertible debt load from $3.3 billion to $2.3 billion, a discount of roughly 30%. That transaction generated a $71 million achieve from debt extinguishment.
Shifting Away From Mining
MARA is making a transparent transfer away from aggressive Bitcoin mining. Officials mentioned the corporate doesn’t plan to make large-scale purchases of ASIC mining {hardware} going ahead.
About 90% of its non-hosted mining capability can reportedly be transformed into AI and IT infrastructure. The firm mentioned its technique facilities on putting new infrastructure alongside current Bitcoin mining operations, permitting it to generate income from energy belongings whereas drawing on its operational expertise in mining.
The firm can be slicing 15% of its workforce, a transfer anticipated to avoid wasting $12 million yearly.
The greatest transfer, although, is the acquisition of Long Ridge Energy from FTAI Infrastructure. The deal is valued at near $1.5 billion, together with about $785 million in debt, and marks the most important acquisition in MARA’s historical past.
Long Ridge operates a 505-megawatt combined-cycle gasoline energy plant in Ohio and sits on greater than 1,600 contiguous acres. MARA initiatives $144 million in annualized EBITDA from the asset.
Stock Performance In Context
Despite Tuesday’s drop, MARA shares are up 30% over the previous month. Strategy, the most important company Bitcoin holder, continues to purchase whereas MARA sells and restructures — a distinction that displays how otherwise corporations within the house are approaching the present atmosphere.
Featured picture from Unsplash, chart from TradingView