MARA sells $1.1 billion in bitcoin as Q3 revenue drops 35%

What happened

MARA Holdings sold 13,597 bitcoin for approximately $1.1 billion after its third quarter closed, according to its Q3 shareholder letter. The coins fetched an average of about $81,039 each, and $750 million of the proceeds went toward repaying all of the company's bitcoin-backed term loans.

The repayment freed 17,477 bitcoin that had been pledged as collateral, leaving less than 5% of MARA's holdings loaned or pledged. MARA held 34,012 BTC as of Sept. 30, so the sale removed roughly 40% of that total within weeks. Subtracting the sale implies about 20,400 BTC remained before accounting for coins mined since.

The company made clear the selling is not finished. MARA said it plans to keep converting bitcoin into cash for purposes including AI infrastructure opportunities, meeting puts on convertible notes that become exercisable next year, and potential share repurchases. Its board also authorized a buyback of up to $500 million in common stock after the quarter.

The disclosure came alongside third-quarter results showing revenue of $164.2 million, down 35% from $252.4 million a year earlier. Net income, however, climbed to $632.1 million, or $1.28 per diluted share, from $123.1 million, helped by an $885.3 million gain on the fair value of digital assets.

Why it matters

MARA spent years assembling one of the largest bitcoin treasuries among public companies, so a sale of this size marks a notable shift in how it treats its holdings. The company now appears to be treating its stack as a source of funding for other businesses rather than purely as a reserve to hold.

The move places MARA alongside other miners that have reduced bitcoin exposure. Riot and Hut 8 sold thousands of coins to fund AI projects and buybacks, Keel sold its entire treasury, and Core Scientific plans to exit mining by year-end. MARA still calls bitcoin mining its operating foundation, but the letter frames power and data-center capacity as the growth opportunity.

What the data shows

Revenue fell $88.2 million year over year, with bitcoin mining accounting for $83.1 million of the decline. A 37% drop in the average price of bitcoin mined reduced revenue by $94.8 million, partly offset by $11.7 million from higher production. Production rose 5% to 2,247 BTC from 2,144 a year earlier, though it was down 7% from the prior quarter's 2,422 BTC.

Energized hashrate reached 71.2 EH/s, up 18% year over year, and MARA won 644 blocks versus 633 a year earlier. Purchased energy cost per bitcoin at owned sites was $39,674, up from $39,235. The company ended September with $946.5 million in cash and about $3.8 billion in cash and bitcoin combined, plus 1,408 BTC lent out that earned about $2.5 million in interest during the quarter. Year to date it has cut total debt by $1.4 billion, or 37%.

Background

MARA's retreat from holding came in stages. It began allowing sales of mined bitcoin in 2025, then expanded the policy in 2026 to cover coins already on its balance sheet. In the first nine months of the year it sold about 26,984 BTC for $1.9 billion, including 3,891 BTC in the third quarter at an average of $75,300.

The company borrowed against its bitcoin during the third quarter to support its planned acquisition of Long Ridge Energy & Power in Ohio. That $750 million financing included $600 million in new capital and $150 million to refinance an existing facility, arranged when bitcoin traded near $64,000. Management estimated a net benefit of about $170 million from the financing and subsequent sale after costs.

MARA has also been building out energy and computing infrastructure. It received FERC approval for the Long Ridge natural gas plant purchase, currently authorized to sell 485 MW, and expects to close in the coming weeks. It secured rights to develop a Matagorda County, Texas site with up to 2 GW of capacity, and its Exaion unit signed a four-year, $79 million GPU-as-a-service contract with its first U.S. customer.

What to watch

MARA said it is targeting two data center leases before year-end but cautioned that market conditions are fluid and timing could slip into next year. Investors will also be watching whether the company follows through on further bitcoin sales and how the $500 million buyback is used. The Long Ridge acquisition is expected to close in the coming weeks following regulatory approval.

Questions readers ask