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SEC filingMarathon's Q1 2026 revenue fell 18% YoY due to lower bitcoin prices and production, while restructuring costs and digital asset losses widened net loss.
For Q1 2026, Marathon reported total revenues of $174.6 million, down 18% from $213.9 million in Q1 2025. Bitcoin mining revenue, the primary revenue driver, fell $35.6 million to $172.2 million, reflecting an 18% decline in the average price of bitcoin mined ($76,288 vs $93,317) and a slight reduction in production (2,247 vs 2,286 BTC). Other revenues (hosting, other digital assets) were immaterial.
Net loss attributable to common stockholders widened dramatically to $1.26 billion from $533 million in the prior year, primarily due to a $714.7 million loss on digital assets (fair value decline) and a $303.9 million loss on digital assets receivable, together totaling over $1.0 billion. Additionally, restructuring costs of $45.9 million, accelerated depreciation of $20.1 million, and a $41.0 million loss on derivative instruments further pressured results. Partially offsetting these were a $70.6 million gain on debt extinguishment and a $30.9 million income tax benefit.
Marathon's core Bitcoin mining segment remains the dominant revenue source, but its performance is highly sensitive to bitcoin price and network difficulty. The average cost to mine per bitcoin at owned sites rose to $40,047 from $35,728, driven by higher network difficulty and lower production. The company's energized hashrate grew to 72.2 EH/s (up from 54.3 EH/s), but fleet expansion was offset by downtime and rising energy costs. Purchased energy costs as a percentage of owned mining revenue increased to 52.5% from 38.3%.
Emerging segments—AI, HPC, and critical IT—are nascent but highlighted as strategic priorities. The Exaion acquisition and Starwood joint venture lay groundwork for diversification, though no material revenue was recorded in Q1 2026. The Long Ridge acquisition (post-quarter) is expected to provide a 505 MW gas plant with low-cost power to support hyperscale workloads.
Management provided no numerical guidance but outlined strategic initiatives: (1) completing the Long Ridge acquisition (expected H2 2026) with a $1.5 billion enterprise value, financed through cash and bitcoin-backed borrowings; (2) advancing the Starwood JV to develop AI/HPC infrastructure on selected sites; and (3) continuing digital asset management to generate income from bitcoin holdings. The company's liquidity position is supported by $513.7 million cash, $2.4 billion in bitcoin (35,303 BTC), and $1.5 billion remaining ATM capacity. Risks include bitcoin price volatility, rising energy costs, and execution of the AI/HPC pivot. The 2026 Restructuring Plan is expected to deliver $12 million in annual savings.