Marathon Digital Loss Wipes Out $458 Million Amid Shift to AI
Marathon Digital Holdings (MARA) saw its shares drop by 10.1% on August 30, wiping out approximately $458 million in market value, after reporting a significant loss of $611 million.
The company's revenue for the second quarter decreased by 26.7% to $174.9 million compared to the same period last year, which was $238.5 million. This decline contributed to a net loss of $611.3 million.
MARAHoldings Inc.'s (MARA) acquisition of Long Ridge Energy & Power for $1.5 billion is seen as an attempt to shift focus from Bitcoin mining to energy infrastructure. The deal includes $785 million in assumed debt and delivers around $144 million in annualized adjusted earnings.
Analysts hold a mixed view on MARA, with 14 ratings reflecting an Overweight consensus and an average price target of $18, indicating a potential 68.7% rise from its current value. However, the mean loss estimate for 2026 has increased to $4.56 per share, reducing confidence in the target price upside.