On Thursday, Bitcoin miner MARA Holdings reported a staggering $533 million net loss for the first quarter this year, despite amassing Bitcoin at a record pace and steadily growing its year-over-year revenue.
The company’s Q1 earnings reported a 30% jump in revenue to $214 million, with its Bitcoin holdings ballooning to 47,531 BTC, a 174% increase from just 17,320 BTC a year ago.
Still, the company’s results missed Wall Street’s expectations. Its net income loss expanded to $533 million (at $1.55 per share) from $337 million (from $1.26 per share) in the previous year.
“We are a growth company, but not at any cost,” CEO Fred Thiel wrote in a letter to shareholders. “Our goal isn’t to chase an arbitrary [Exahash] number.”
The end result? A major hit to its bottom line, despite roughly tripling its Bitcoin holdings.
At the same time, its Bitcoin production dropped by 19% year-over-year to 2,286 BTC in Q1 2025, primarily due to the Bitcoin halving last year that reduced mining rewards.
Still, MARA sees Bitcoin’s potential as “the most optimal macro hedge in uncertain environments,” Thiel said. This is all the more important as MARA seeks to transform itself “into a vertically integrated digital energy and infrastructure company,” he said.
Decrypt reached out to MARA Holdings for further comment.
Paper losses
MARA’s massive quarterly loss stemmed primarily from a $510 million negative adjustment on the fair value of its Bitcoin holdings, as the alpha crypto’s price declined from $93,354 to $82,534 during the quarter.
Crypto accounting standards approved in 2023 have also changed how MARA reports its Bitcoin holdings.
Instead of using the previous cost-less-impairment model, the company now measures its crypto assets at fair market value at the end of each reporting period, with changes flowing directly through its net income. As a result, it created dramatic paper losses despite those being non-cash charges.
The company maintains a strong liquidity position with $196 million in cash and nearly $4.1 billion in combined cash and digital assets as of the end of Q1, its consolidated balance sheet shows.
“We believe that staying steadfast to our strategy will, in time, lead to greater value creation for our shareholders,” Thiel wrote.
Edited by Sebastian Sinclair