Marathon Digital Holdings, Inc. Q2 FY2025 earnings call

• Q2 was a record-breaking quarter with new highs in revenues, adjusted EBITDA, net income, etc.
• Announced strategic partnerships with TAE Power solutions and Pado AI for grid-responsive load balancing platforms.
• Completed construction of a behind-the-meter data center at a wind-powered site in Texas.
• Holdings surpassed 50,000 bitcoin, making MARA the second largest global corporate public holder.
• Made a minority investment in Two Prime for digital asset management.
• Focus on digital energy and sovereign edge infrastructure, with regional headquarters in Saudi Arabia and France.
• Excited about Investor Day in fall to detail long-term roadmap for digital energy strategies across mining, infrastructure, and AI.

In Q2 2025, MARA achieved record financial performance. Revenues increased 64% to $238.5 million from $145.1 million in Q2 2024. Bitcoin holdings surged from approximately 18,500 BTC to nearly 50,000, a 170% increase. Energized hashrate expanded by 82% to 57.4 exahash per second. The market value of bitcoin holdings increased by over $4.2 billion or 362% year-over-year. Purchased energy cost per bitcoin for the quarter was $33,735 per coin, among the lowest in the sector. Bitcoin revenue contribution is significant given the growth in holdings and related financial metrics.

• On track to reach 75 exahash year-end target, with most miners secured and funded except $150 million.
• Pipeline of over 3 gigawatts of power, positioning for international expansion.
• Bolstered balance sheet with $950 million convertible notes offering for strategic opportunities like opportunistic bitcoin purchases, debt repurchase, M&A, etc.

• Concerns about frothiness in bitcoin price, potential downward pressure if buying demand subsides.
• Competition from new entrants and companies transitioning to HPC, which could impact bitcoin mining margins.
• Seasonal curtailment risks in summer months, especially in states like Texas, affecting mining operations.

Q: Talk about MARA's cost to mine per bitcoin?

A: That's a very important question. As MARA evolved from an asset-light strategy to an asset-heavy strategy, electricity cost per coin hovers around $50,000 per coin, still more than 50% cheaper than buying in the open market. Costs are expected to further improve as third-party mining operations expire and low-cost energy sources like wind farms are utilized.

Q: How will the GENIUS Act affect MARA's path to bitcoin mining?

A: The GENIUS Act opens the floodgates to stable coins being integrated with the TradFi system. This could create greater liquidity, leading to more 24/7 trading and potential greater capital allocation to bitcoin, likely increasing incentive for people to trade bitcoin.