MARA Holdings (NASDAQ: MARA) Surges 19.3% on Blowout Q4 Earnings

Shares of MARA Holdings (NASDAQ: MARA)—formerly known as Marathon Digital Holdings—experienced a stunning surge of up to 19.3% on Thursday morning

Shares of MARA (NASDAQ:)Holdings (NASDAQ:)—formerly known as Marathon Digital (NASDAQ:) Holdings—surged by as much as 19.3% in Thursday morning trading. The company’s stunning fourth-quarter earnings report, which blew past Wall Street expectations, initially sent the stock soaring.

However, despite the initial buying frenzy, MARA’s stock settled with a 9.2% gain by midday, highlighting the ongoing volatility in the Bitcoin (BTC/USD) mining sector.

Even with this strong performance, it’s worth noting that MARA is still down 55% over the past year. This stark statistic underscores the critical question at the heart of investing in Bitcoin mining stocks: can they survive in the long term?

To answer this question, we’ll need to delve deeper into MARA’s earnings report and the unique risks and opportunities that come with holding a company like this in 2025.

MARA Q4 Earnings: A Surprising Beat As Analysts Braced For Woes

As we discussed in our previous article, analysts had been pessimistic about MARA’s earnings, anticipating a net loss of $0.16 per share on revenue of roughly $181 million.

Considering the unpredictable nature of Bitcoin mining, many analysts believed that the company’s earnings would ultimately disappoint investors.

However, in a surprising turn of events, MARA managed to completely bypass these expectations, reporting earnings that exceeded forecasts. Here’s a summary of the key takeaways:

This unexpected revenue surge and profitability boost were primarily fueled by the company’s Bitcoin mining operations and strategic purchases of Bitcoin on the open market.

How MARA’s Bitcoin Strategy Paid Off In Q4

During Q4 2024, MARA mined 2,492 Bitcoins (BTC) at an average cost of $52,035 per coin. This mining efficiency allowed the company to benefit from Bitcoin’s price movements while maintaining relatively stable operating costs.

But MARA did more than just mine; it accumulated 15,574 BTC on the open market at an average cost of $98,531 per coin, making it one of the largest institutional Bitcoin holders.

Ultimately, this strategy directly links MARA’s financial performance to the cryptocurrency’s price trends. While this approach can lead to massive profits during bull markets, it also exposes the company to substantial losses if Bitcoin prices experience a decline.

Beyond Bitcoin Mining: MARA’s Diversified Revenue Streams

Unlike many of its competitors that rely solely on mining, MARA has diversified its business model to include energy production and computing services, creating additional revenue streams.

1. Bitcoin Mining: The Core Business

At its core, MARA is still a Bitcoin mining company. It earns revenue by:

While mining remains the company’s primary revenue driver, MARA has made strategic moves to reduce its dependence on Bitcoin’s price volatility.

2. Energy Production and Data Center Services

Unlike many of its competitors, MARA has invested heavily in energy generation, acquiring wind farms and hydroelectric power facilities with a total capacity of 136 megawatts (MW). This move provides multiple advantages:

In addition, MARA has expanded into high-performance computing (HPC) services, leveraging its data centers to offer computing power for artificial intelligence (AI), machine learning, and cloud-based services. This diversification makes MARA less vulnerable to Bitcoin price fluctuations compared to traditional mining firms.

The Bitcoin Halving: A Double-Edged Sword For MARA

The recent Bitcoin halving event, which reduced the mining reward per block from 6.25 BTC to 3.125 BTC, presents both an opportunity and a challenge for MARA.

Impact On MARA’S Mining Operations

MARA has already started capitalizing on the halving, increasing its share of global Bitcoin mining rewards to 5.6% in Q4 2024. To put this in perspective, its share was 4.8% in Q3 and 4.4% in Q4 2023.

However, if Bitcoin prices do not rise substantially, MARA’s profitability could take a hit. With lower block rewards and potentially higher energy costs, the company will need to keep a close eye on its mining expenses to remain in the black.

The Risk Factor: High Debt And Market Uncertainty

To fund its aggressive Bitcoin accumulation strategy, MARA took on substantial long-term debt in Q4 2024, a move that comes with significant risks.

As February 2025 unfolds and Bitcoin prices continue to fluctuate, all eyes will be on MARA’s next earnings report. This report will be a key test of the company’s resilience in the face of market volatility.

For risk-tolerant investors, MARA presents a high-risk, high