{"id":72424,"date":"2026-05-12T23:07:47","date_gmt":"2026-05-12T23:07:47","guid":{"rendered":"https:\/\/crowdfundjunction.com\/blog\/marathon-posts-1-3b-loss-as-bitcoins-18-slide-cuts-q1-revenue-by-35m\/"},"modified":"2026-05-12T23:07:47","modified_gmt":"2026-05-12T23:07:47","slug":"marathon-posts-1-3b-loss-as-bitcoins-18-slide-cuts-q1-revenue-by-35m","status":"publish","type":"post","link":"https:\/\/crowdfundjunction.com\/blog\/marathon-posts-1-3b-loss-as-bitcoins-18-slide-cuts-q1-revenue-by-35m\/","title":{"rendered":"Marathon Posts $1.3B Loss as Bitcoin\u2019s 18% Slide Cuts Q1 Revenue by $35M"},"content":{"rendered":"<p><b>(Originally posted on : Bitcoin News )<\/b><br \/>\n<\/p>\n<div>\n<div class=\"@container mb-[25px] rounded-sm overflow-clip py-0.5 pr-0.5 pl-2.5 bg-success-100\">\n<div class=\"flex flex-col gap-m overflow-clip rounded-[6px] !bg-success-10 p-3 @[420px]:p-m\">\n<h2 class=\"m-0 flex items-center gap-s text-[19px] !text-[#1c1c1c] md:text-[20px]\"><svg xmlns=\"http:\/\/www.w3.org\/2000\/svg\" width=\"16\" height=\"10\" viewbox=\"0 0 16 10\" fill=\"none\" class=\"shrink-0 text-success-100\" aria-hidden=\"true\"><path d=\"M1 1.5h14\" stroke=\"currentColor\" stroke-width=\"2.5\" stroke-linecap=\"round\"\/><path d=\"M1 8.5h10\" stroke=\"currentColor\" stroke-width=\"2.5\" stroke-linecap=\"round\"\/><\/svg><span>Key Takeaways<\/span><\/h2>\n<ul class=\"m-0 flex list-none flex-col gap-m pl-0\">\n<li class=\"m-0 flex items-start gap-s !text-[#434248]\"><span class=\"mt-2 size-2 shrink-0 rounded-full bg-success-100\" aria-hidden=\"true\"\/><span class=\"text-body\">Marathon Holdings posted a $1.3 billion net loss in Q1 2026 due to an 18% drop in average bitcoin prices.<\/span><\/li>\n<li class=\"m-0 flex items-start gap-s !text-[#434248]\"><span class=\"mt-2 size-2 shrink-0 rounded-full bg-success-100\" aria-hidden=\"true\"\/><span class=\"text-body\">The 33% surge in hashrate to 72.2 EH\/s reflects intense mining competition and rising overhead costs.<\/span><\/li>\n<li class=\"m-0 flex items-start gap-s !text-[#434248]\"><span class=\"mt-2 size-2 shrink-0 rounded-full bg-success-100\" aria-hidden=\"true\"\/><span class=\"text-body\">Marathon sold $1.5 billion in bitcoin to fund a strategic pivot into AI and retire 30% of its debt.<\/span><\/li>\n<\/ul>\n<\/div>\n<\/div>\n<h2>Surge in Operating Costs<\/h2>\n<p>Digital infrastructure company Marathon Holdings attributed a decline in revenue in the first quarter of 2026 to a decrease in the U.S. dollar value of <span>bitcoin<\/span> during the period. According to a letter to shareholders released May 11, revenue in the quarter reached $174.6 million, a $39.3 million decline from the $213.9 million recorded in the first quarter of 2025.<\/p>\n<p>The letter revealed that an 18% decrease in the average price of <span>bitcoin<\/span> accounted for $33.1 million of the decline, while $2.5 million was attributed to a reduction in <span>bitcoin<\/span> production. The remaining $3.7 million was attributed to a drop in other revenue. The losses occurred despite a 33% increase in the <span>hashrate<\/span>, which rose from 54.3 EH\/s in the first quarter of 2025 to 72.2 EH\/s.<\/p>\n<p>Reduced revenue, coupled with a surge in operating costs, led Marathon to register a $1.3 billion net loss during the quarter. During the same period last year, the firm recorded a net loss of $533.4 million, or $1.55 per diluted share, meaning overheads increased by $729 million in the first three months of 2026.<\/p>\n<p>\u201cThe $729.0 million increase in net loss was primarily driven by a $520.4 million increase in operating loss, largely due to unfavorable <span>bitcoin<\/span> mark-to-market adjustments of ($1.0 billion) and restructuring costs of $45.9 million during the quarter,\u201d the letter stated.<\/p>\n<p>Marathon\u2019s latest loss-making quarter comes at a <a href=\"https:\/\/news.bitcoin.com\/beyond-the-hashrate-why-mara-just-laid-off-15-of-its-staff\/\">pivotal moment<\/a> for the company as it seeks to reposition itself beyond <span>cryptocurrency<\/span> mining and into the rapidly expanding artificial intelligence (AI) infrastructure market. The shift reflects a broader trend among <span>Bitcoin<\/span> miners facing tighter margins, higher operating costs, and increasing uncertainty in the post-halving environment.<\/p>\n<p>Meanwhile, besides directing more resources toward AI-supporting data centers, Marathon used its <span>bitcoin<\/span> holdings to fund the retirement of 30% of its outstanding convertible debt at a discount. The move reportedly reduced <span>leverage<\/span>, lowered potential future dilution, and improved Marathon\u2019s \u201cability to allocate capital toward higher-return strategic opportunities.\u201d<\/p>\n<p>\u201cDuring the quarter, we sold approximately $1.5 billion of <span>bitcoin<\/span>. These funds were used to repurchase, at a discount, over $1 billion of the face value of our 2030 and 2031 notes, and reduce our line of credit by $200 million,\u201d the letter explained.<\/p>\n<p>Additionally, Marathon refinanced $150 million of its line of credit at a 7% interest rate, down from the 10.5% it previously paid.<\/p>\n<p>Despite diversifying from <span>bitcoin mining<\/span>, Marathon said reducing its debt by monetizing <span>bitcoin<\/span> reflects its <a href=\"https:\/\/news.bitcoin.com\/bitcoin-mining-giant-mara-completes-950m-deal-to-buy-more-btc\/\">confidence in the cryptocurrency<\/a> as an important reserve asset. Consequently, at the end of the quarter, Marathon held 35,303 <span>bitcoin<\/span>, including 9,995 <a href=\"https:\/\/www.binance.com\/en\/price\/bitcoin\" class=\"lar_link lar_link_outgoing\" target=\"_blank\" rel=\"noopener noreferrer\">bitcoin<\/a> loaned or pledged as collateral. During the first quarter of 2026, it mined 2,247 <a href=\"https:\/\/www.binance.com\/en\/price\/bitcoin\/\" class=\"lar_link lar_link_outgoing\" target=\"_blank\" rel=\"noopener noreferrer\">BTC<\/a>, bringing the value of its <a href=\"https:\/\/www.binance.com\/en\/price\/bitcoin\" class=\"lar_link lar_link_outgoing\" target=\"_blank\" rel=\"noopener noreferrer\">bitcoin<\/a> holdings to approximately $2.4 billion based on a spot price of $68,222 per <a href=\"https:\/\/www.binance.com\/en\/price\/bitcoin\" class=\"lar_link lar_link_outgoing\" target=\"_blank\" rel=\"noopener noreferrer\">bitcoin<\/a>.<\/p>\n<\/p><\/div>\n<p><a href=\"https:\/\/news.bitcoin.com\/marathon-posts-1-3b-loss-as-bitcoins-18-slide-cuts-q1-revenue-by-35m\/\">Source link <\/a><br \/>\n<br \/><\/p>\n","protected":false},"excerpt":{"rendered":"<p>(Originally posted on : Bitcoin News ) Key Takeaways Marathon Holdings posted a $1.3 billion net loss in Q1 2026 due to an 18% drop in average bitcoin prices. The 33% surge in hashrate to 72.2 EH\/s reflects intense mining competition and rising overhead costs. Marathon sold $1.5 billion in bitcoin to fund a strategic [&hellip;]<\/p>\n","protected":false},"author":10,"featured_media":72425,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"om_disable_all_campaigns":false,"_monsterinsights_skip_tracking":false,"_monsterinsights_sitenote_active":false,"_monsterinsights_sitenote_note":"","_monsterinsights_sitenote_category":0},"categories":[32],"tags":[],"_links":{"self":[{"href":"https:\/\/crowdfundjunction.com\/blog\/wp-json\/wp\/v2\/posts\/72424"}],"collection":[{"href":"https:\/\/crowdfundjunction.com\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/crowdfundjunction.com\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/crowdfundjunction.com\/blog\/wp-json\/wp\/v2\/users\/10"}],"replies":[{"embeddable":true,"href":"https:\/\/crowdfundjunction.com\/blog\/wp-json\/wp\/v2\/comments?post=72424"}],"version-history":[{"count":0,"href":"https:\/\/crowdfundjunction.com\/blog\/wp-json\/wp\/v2\/posts\/72424\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/crowdfundjunction.com\/blog\/wp-json\/wp\/v2\/media\/72425"}],"wp:attachment":[{"href":"https:\/\/crowdfundjunction.com\/blog\/wp-json\/wp\/v2\/media?parent=72424"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/crowdfundjunction.com\/blog\/wp-json\/wp\/v2\/categories?post=72424"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/crowdfundjunction.com\/blog\/wp-json\/wp\/v2\/tags?post=72424"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}