Marathon Digital Q1 Revenue Falls 18%; Mining Remains Core

Marathon Digital reported first-quarter revenue of $174.6 million, down 18% from $213.9 million a year earlier. The company posted a $1.3 billion net loss for the quarter, driven largely by unrealized markdowns on the 38,689 bitcoins on its balance sheet. Shares declined more than 5% in after-hours trading on Monday.

Operationally, Marathon increased its energized hashrate 33% year over year to 72.2 exahashes per second and mined 2,247 BTC in the quarter, up from 2,011 BTC in the prior quarter. Near the end of the period the company sold about $1.1 billion of bitcoin to retire debt and improve financial flexibility, a reduction that moved its public bitcoin treasury ranking from second to fourth.

In a shareholder letter, management wrote that bitcoin mining remains the company’s “operational foundation.” The letter stated the strategy centers on “co-locating new infrastructure with existing Bitcoin mining operations,” which allows the company to generate revenue from mining now while preserving the option to redirect power to AI and critical IT loads at the same sites.

Marathon described itself as a “digital infrastructure company” focused on owning and monetizing power assets across AI, high-performance computing and bitcoin mining. The company said it will slow large-scale ASIC purchases and that future capital allocation will be selective and grounded in clear economic return.

The company highlighted its partnership with Starwood Capital and the acquisition of Long Ridge Energy & Power, a gas-fired power plant and data center campus in Ohio. Marathon said Long Ridge could eventually support more than 600 megawatts of AI load and that roughly 90% of its non-hosted mining capacity could be repurposed for AI and IT infrastructure.

The quarter combined higher hashrate and bitcoin production with a reduced bitcoin treasury and increased non-mining investments in power and data center assets. Management characterized the approach as maintaining mining revenue while developing sites that can serve AI and other computing customers over time.