MARA Holdings Sells 13,597 Bitcoin, Repays $750M in Loans as AI Pivot Advances
MARA Holdings reported third-quarter net income of $632.1 million, driven largely by an $885.3 million unrealized gain on its Bitcoin holdings, while revenue fell 35% to $164.2 million. After the quarter closed, the miner sold 13,597 BTC for about $1.1 billion and used $750 million to repay Bitcoin-backed loans.
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Quarterly Results and the Bitcoin Gain
MARA Holdings, the miner formerly known as Marathon Digital, reported third-quarter net income of $632.1 million, or $1.28 per diluted share, against $123.1 million a year earlier. Most of that profit came from an $885.3 million unrealized fair-value gain on digital assets the company holds, not from mining. Accounting rules allow companies to count the rising value of crypto they hold as income even when they have not sold it.
Revenue told a weaker story. It fell 35% year over year to $164.2 million, from $252.4 million. MARA's average Bitcoin price realization dropped 37%, even though the company mined 2,247 coins during the quarter and its hashrate rose 18% to 71.2 EH/s.
The Post-Quarter Bitcoin Sale
After September 30, MARA sold 13,597 BTC for approximately $1.1 billion, or about $81,039 per coin, according to its third-quarter shareholder letter. The company used $750 million of the proceeds to repay Bitcoin-collateralized term loans. Sources differ on how much collateral that released: NewsBTC reports 17,477 BTC, while Crypto Briefing gives a range of 17,477 to 18,750 BTC.
Both outlets report that pledged or lent Bitcoin fell to less than 5% of MARA's remaining holdings, down from roughly 57% at the earlier reporting date, per NewsBTC. The 34,012 BTC total cited in the Q3 results is a September 30 figure and does not reflect the post-quarter sale.
Strategy and Capital Allocation
MARA said the sale let it clear Bitcoin-backed borrowing that had helped finance its proposed acquisition of the Long Ridge natural gas plant, before that deal closes. Selling reserve coins reduces exposure to any later Bitcoin recovery, while keeping them would preserve that upside but leave the company exposed to collateral calls if prices fell. MARA also authorized share repurchases of up to $500 million.
The company has cut debt by $1.4 billion, or 37%, since the start of the year. It is also pursuing AI and high-performance computing work, including a $79 million GPU-as-a-service contract through Exaion. NewsBTC notes that Long Ridge includes land that could support a data-center campus, but that development plans are not the same as signed leases.
Open Questions
Several items remain unresolved. Whether Long Ridge closes, whether planned data-center leases are signed, how much Bitcoin stays unrestricted, and whether new AI revenue offsets the capital committed are all still pending. Neither source treats the $885.3 million gain or the buyback authorization as recurring mining cash flow, and an authorization does not guarantee the full $500 million will be spent.
Why It Matters
For Traders
MARA's large BTC sale and loan repayment reduce near-term collateral-call risk for the miner, though the sale also removes a source of direct Bitcoin exposure from its balance sheet.
For Investors
The shift from holding mined Bitcoin toward funding AI and power assets signals that public miners are treating their coin reserves as financing capital rather than a fixed treasury.
For Builders
Miners pivoting toward data-center and GPU hosting means infrastructure built on mining sites may increasingly need power, cooling and colocation designs rather than pure hashrate capacity.
This article is for information only and is not financial advice. Read the full disclaimer.
