Bitcoin miner Marathon Digital Holdings (MARA) posted a net loss of $611.3 million in the second quarter of 2026. The loss, equivalent to $1.60 per diluted share, compares to net income of $808.2 million, or $1.84 per diluted share, in the same period of 2025, according to the company's 10-Q SEC filing.
The Q2 loss stemmed primarily from a markdown on MARA's Bitcoin holdings—even as the company mined 2,422 Bitcoin during the quarter, its highest quarterly production in over a year.
Bitcoin production rose 3 percent year over year. A 28 percent decline in average Bitcoin price during the quarter offset that output gain.
Chief Financial Officer Salman Khan pointed to both factors. "Bitcoin prices created a challenging revenue environment [and] we used the quarter to change our power portfolio and capital structure," Khan said.
As of June 30, MARA held 35,577 Bitcoin valued at $2.1 billion, making it the fourth-largest public Bitcoin holder behind Strategy, Twenty One Capital and Metaplanet.
MARA has moved to diversify into AI and high-performance computing infrastructure. In February, the company acquired a majority stake in Exaion SAS, which manages HPC data centers and secure cloud infrastructure.
Also in February, MARA announced a partnership with Starwood Capital Group and its Starwood Digital Ventures platform to convert select MARA sites for enterprise, hyperscale and AI clients.
MARA is targeting at least two AI/HPC lease signings before year-end. CEO Fred Thiel said, "Working alongside Starwood, we are progressing lease discussions across multiple sites, and we remain confident in our ability to sign at least 2 leases before year-end."
In July, the company agreed to acquire a 1,200-acre powered land site in Matagorda County, Texas, expected to access up to 2 gigawatts of grid capacity by April 2028. MARA plans to develop the site for both AI/HPC workloads and Bitcoin mining.
Separately, MARA has a pending $1.5 billion acquisition of Long Ridge Energy Power in Ohio, which could support up to 600 megawatts of AI and critical-IT load.
In a shareholder letter, Thiel said Bitcoin mining remains central to MARA's business and will continue generating cash flow to support other investments. "Ultimately, we do not view Bitcoin mining and AI infrastructure as competing businesses," Thiel said, outlining a capital allocation approach where every megawatt deploys into its highest-value application.
Revenue fell 27 percent to $174.9 million from $238.5 million a year earlier. Shares dropped 5.25 percent to $10.65 in regular trading following the earnings report.
