Marathon Digital Holdings, Inc. Q3 FY2025 earnings call

• MARA is transitioning from a pure-play Bitcoin miner to a vertically integrated digital infrastructure company, integrating Bitcoin and AI. - Installed first AI inference racks at the Granbury site within a modular non-water cooled containerized data center. - Pending acquisition of Exaion to expand enterprise-grade AI-optimized private cloud and HPC infrastructure. - Partnership with MPLX to develop integrated power generation facilities and data center campuses in West Texas. - Exited near-term investment in 2-phase immersion to focus on more immediate high-return opportunities. - Profit per megawatt hour is the guiding metric, measuring energy conversion to value in Bitcoin, AI, or grid stability.

During the third quarter of 2025, MARA's revenues surged 92% to $252.4 million compared to $131.6 million in Q3 2024. Bitcoin holdings expanded significantly, growing from approximately 27,000 to nearly 53,000, a rise of over 98%. Energized hashrate increased 64% from 36.9 to 60.4 exahash per second. Bitcoin's average price jumped 88%, contributing $113.3 million to revenues. The purchased energy cost of Bitcoin for the quarter was $39,235, and the daily cost per petahash per day improved by 15% year-over-year. The company reported a net income of $123.1 million or $0.27 per diluted share, contrasting with a net loss of $124.8 million or negative $0.42 per diluted share in Q3 2024, and recorded a $343.1 million gain on digital assets.

• Executing on a pipeline of energy infrastructure projects in the US and internationally, expecting investments to expand capabilities while keeping costs low. - Starting in Q4, will share production on a quarterly basis. - Holds over $7 billion in liquid assets for domestic growth and international expansion.

• Market volatility in Bitcoin price. - Regulatory changes affecting operations. - Technology obsolescence in AI and mining hardware. - Challenges in executing large-scale infrastructure projects.

Q: How does the partnership with MPLX provide flexibility?

A: The partnership with MPLX provides access to low-cost gas, potential for up to 1.5 gigawatts of data center capacity, and flexibility to blend inference AI and Bitcoin mining at sites.

Q: What is the role of Exaion in MARA's strategy?

A: Exaion provides access to a team, existing data centers, secure data operation software, and experience in operating sensitive data, allowing MARA to expand global private cloud solutions.

Q: How does MARA view the AI inference market?

A: MARA sees inference AI as where value is created long-term, with open-source models and low-cost hardware driving efficiency, and the company optimizing for lowest cost per token in AI inference.