MARA Holdings, formerly known as Marathon Digital Holdings, reported a significant third-quarter net income of $632.1 million, or $1.28 per diluted share, a sharp increase from the $123.1 million recorded in the same quarter a year earlier. The bulk of this profit stemmed from the appreciation of Bitcoin held by the company rather than from mining and selling the cryptocurrency.
After the quarter ended, MARA sold 13,597 Bitcoin for approximately $1.1 billion, using most of the proceeds to reduce its debt. The company's financial results also highlighted an $885.3 million unrealized fair-value gain on digital assets, reflecting the rising value of the crypto holdings. However, revenue declined by 35% year-over-year to $164.2 million, down from $252.4 million in the prior-year quarter.
Despite producing more Bitcoin and improving operational efficiency, MARA's average Bitcoin price realization dropped by 37%. The company mined 2,247 Bitcoin during the quarter, with its hashrate reaching 71.2 EH/s, an 18% increase from the previous year. As of September 30, MARA held 34,012 Bitcoin, including receivables, with cash and equivalents totaling $946.5 million.
The post-quarter Bitcoin sale, at an approximate price of $81,039 per coin, allowed MARA to repay $750 million in term loans backed by Bitcoin. This repayment freed between 17,477 and 18,750 BTC from collateral, reducing the company's pledged Bitcoin to less than 5% of its total holdings. MARA has cut its debt by $1.4 billion, or 37%, since the start of the year and announced a share repurchase program worth up to $500 million.
The company is also expanding into artificial intelligence and high-performance computing infrastructure, including the acquisition of the Long Ridge natural gas plant and a $79 million GPU-as-a-service contract through Exaion. The quarter's results underscore the dual nature of public Bitcoin miners, balancing operational revenue with the volatile value of their Bitcoin treasuries.