0001507605-25-000018
SEC filingRevenue grew 64% YoY driven by higher bitcoin price and production, with net income of $808M versus prior year loss.
For the three months ended June 30, 2025, MARA generated revenues of $238.5 million, a 64% increase from $145.1 million in the prior year period. The growth was primarily driven by a 77% surge in bitcoin mining revenue to $228.8 million, reflecting a 50% rise in the average bitcoin price ($98,975 vs. $65,849) and a 300 BTC increase in production (2,358 vs. 2,058). Hosting services declined sharply to $1.2 million from $8.7 million due to planned contract terminations following the GC Data Center Acquisition.
Net income attributable to common stockholders was $808.2 million, a dramatic turnaround from a net loss of $199.7 million in Q2 2024. The swing was largely attributable to a $846.0 million gain on digital assets (driven by bitcoin's price increase) versus a $148.0 million loss a year ago, and a $346.5 million gain on digital asset receivables from the new bitcoin asset management strategy. Adjusted EBITDA improved to $1.245 billion from a loss of $125.5 million.
Costs increased across the board: purchased energy costs rose 60% to $41.7 million due to expanded owned mining sites and hashrate growth, but cost per petahash per day improved 24% to $28.7. General and administrative expenses increased 74% to $92.9 million, driven by stock-based compensation and higher headcount (from 109 to 201). Depreciation and amortization rose 50% to $161.7 million from additional mining rig deployments.
Bitcoin mining remains the dominant segment, contributing 96% of total revenue. The segment benefited from both price and volume growth, with average daily production of 25.9 BTC (up from 22.9). The purchased energy cost per BTC rose to $33,735 from $31,065 due to higher network difficulty and the April 2024 halving event. Hosting services revenue contracted as the company pivots from asset-light to a vertically integrated model. Other revenue, though small, increased significantly, reflecting early contributions from energy management and AI-related initiatives.
Management's outlook focuses on scaling hashrate to 75 EH/s by end of 2025, up from 57.4 EH/s as of June 30. The company is actively expanding into AI inference computing through partnerships with PADO AI and TAE Power Solutions, aiming to develop grid-responsive platforms. The bitcoin asset management strategy, covering 31% of holdings, is expected to generate incremental yield and liquidity. Liquidity remains strong with $5.4 billion in combined cash and digital assets, though operating and investing activities consumed $715.9 million in cash during the first half of 2025. MARA expects to fund growth through public capital markets, including its at-the-market programs, and sees expanded financing opportunities following the rescission of SAB 121.
As of June 30, 2025, the company's total debt stood at $2.60B, consisting of $2.25B in convertible notes (December 2026, September 2031, March 2030, and June 2031 notes) and $350M drawn under lines of credit. The line of credit increased by $150M from December 2024, with 5,669 bitcoin pledged as collateral. Digital assets (bitcoin) held totaled 49,951 units with a fair value of $5.35B, including 15,550 bitcoin receivable from lending, trading, and borrowing arrangements. An allowance for credit losses of $20.1M was recorded against digital asset receivables. No cash balance is explicitly disclosed in the Notes, but the balance sheet shows $109.5M cash and equivalents (outside Notes scope).
Purchase commitments as of June 30, 2025 totaled $495.7M: $51.4M for mining equipment (due in periodic installments through 2025) and $444.3M for hosting services (minimum payments over the next three years). Additionally, contingent consideration liabilities of $15.3M related to acquisitions were recorded. The company has paid $144.7M in deposits toward miner purchases. Hosting agreements extend through 2028.
No share buyback programs or dividends were disclosed. The company's capital allocation focused on debt management: the line of credit was expanded by $150M during the period. In July 2025 (subsequent event), the company issued $950M in 0.00% convertible notes due 2032, using proceeds to repurchase $19.4M of existing notes and fund capped call transactions. An at-the-market equity program (2025 ATM) with up to $2.0B in aggregate offering price was initiated; $219.2M was raised in Q2 2025 and $100.1M under the previous 2024 ATM. Post-June 2025, an additional $1.6B remained available.
The company operates as a single operating segment, with no disaggregated segment reporting. The chief operating decision maker uses consolidated net income to assess performance and allocate resources. No geographic mix is disclosed.
Net income was $274.8M, but CFO was -$378.9M. The large divergence is due to non-cash adjustments: $319.6M depreciation, $89.6M deferred tax, $103.8M stock-based compensation, and a $682.3M gain from fair value changes of digital assets (non-cash). Operating cash flow was further burdened by a $456.2M working capital outflow. The negative CFO indicates heavy investment in working capital and digital asset purchases.
Capital expenditures rose to $157.8M from $26.3M, reflecting significant investment in property and equipment. The ratio of capex to CFO is not meaningful given negative CFO.
Share repurchases totaled $35.5M, up from $23.1M. No dividends were paid. Financing activities were dominated by $319.3M in stock issuance.
The early termination expenses of $27.8M in the prior period were absent in 2025. The change in fair value of digital assets generated a large non-cash gain, which obscured the cash operating performance.