Marathon Posts $1.3B Loss as Bitcoin's 18% Slide Cuts Q1 Revenue by $35M

"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 pivot into AI and retire 30% of its debt."

"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. The letter revealed that an 18% decrease in the average price of bitcoin accounted for $33.1 million of the decline, while $2.5 million was attributed to a reduction in bitcoin production. The remaining $3.7 million was attributed to a drop in other revenue."

"The losses occurred despite a 33% increase in the hashrate, which rose from 54.3 EH/s in the first quarter of 2025 to 72.2 EH/s. 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."

"The $729.0 million increase in net loss was primarily driven by a $520.4 million increase in operating loss, largely due to unfavorable bitcoin mark-to-market adjustments of ($1.0 billion) and restructuring costs of $45.9 million during the quarter, the letter"

Marathon Holdings reported a $1.3 billion net loss in Q1 2026, driven by an 18% decline in average bitcoin prices. Revenue fell to $174.6 million, down from $213.9 million in Q1 2025, with $33.1 million of the decline tied to lower bitcoin pricing, $2.5 million tied to reduced bitcoin production, and $3.7 million tied to other revenue decreases. Hashrate increased 33% to 72.2 EH/s, reflecting intensified mining competition and higher overhead costs. Operating costs rose sharply, including unfavorable bitcoin mark-to-market adjustments of about $1.0 billion and restructuring costs of $45.9 million. Marathon sold $1.5 billion in bitcoin to pivot toward AI and retire 30% of its debt.

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