Summary MARA reported strong Q3 financial and operational results, with 92% YoY revenue growth and significant efficiency improvements. Despite recent Bitcoin weakness impacting MARA's stock and Q4 outlook, current capacity and operational metrics remain robust, supporting long-term resilience. MARA is expanding into AI and HPC, leveraging its compute assets to diversify growth beyond crypto mining and tap into a trillion-dollar market opportunity. With a low valuation relative to historic levels, the recent stock pullback presents a compelling buy-the-dip opportunity for investors. It has been some time since my first article on MARA Holdings, Inc. (MARA). My cautiousness back then seems to have been justified. After recent declines, the stock is down around 17% since I initiated coverage. With Bitcoin ( BTC-USD ) prices struggling lately, this should not be a major surprise. Nonetheless, the company reported earnings less than two weeks ago, and today, I'll provide an in-depth update for readers. In the analysis below, MARA's Q3 is shown to be strong both in terms of financial and operational metrics. While the price of Bitcoin may weigh on the company's Q4 results, currently capacity and efficiency are robust, and so MARA is overall well positioned to handle headwinds. Furthermore, the company has a sizeable AI opportunity in front of them as they look to expand into HPC. Therefore, I view the valuation contraction and stock price weakness as a buying opportunity right now. Seeking Alpha A Big Picture View MARA Holdings Q3 Presentation Before going into their financial results, it is worth mentioning that MARA is currently operating on four continents and has 18 digital compute sites. The reach is beyond the U.S., and as you can see in the above map, they have been able to tap renewable sources of energy, and in Finland they were also able to recycle heat to warm a population of 80K people. This is an indication that the company focuses on a stakeholder approach where they care about more than just profits, and in the long run, benefits could trickle down to shareholders. While the company is now international, you can see in the breakdown above that in terms of flexible compute, MARA is still heavily rooted in America. Later, we'll talk about their AI ambitions, and so this shows that their HPC will be mainly for the U.S. in the near future. As of now, they have 1.8 GW in flexible compute capacity, so they could potentially become a notable player. Now, onto their financial results. Revenue Performance Data by YCharts For 2025 Q3, MARA reported revenues totalling $252 million, up 92% YoY. It is quite comical that this growth rate is quite low relative to historic growth seen in late 2023 and early 2024, as over 90% growth is definitely not something to complain about. Also, note that there was top line growth acceleration in Q3, as a 64% increase was reported back in their Q2, and so it seems that overall activity is showing strong momentum. Still, MARA missed on the top line by $2.06 million, and so analysts clearly had high expectations for the company. Operating Metrics Look Robust MARA Holdings Q3 Presentation As you can see in the chart above, MARA's total Bitcoin holdings rocketed 98% YoY as a demonstration of the company's commitment to crypto despite some AI ambitions as well. In Q3 specifically, they mined a total of 2,144 Bitcoins while acquiring another 2,257. Production was up from the year ago quarter's 2,070, and the 64% YoY increase in the energized hashrate shows that their capacity has significantly improved. However, purchases were down significantly from 6,210. This significant slowing in Bitcoin acquisition could be a signal that MARA didn't see Bitcoin's price to be attractive, but they did emphasize that, unlike some other companies, they are not aiming to be a Bitcoin treasury company. They remain focussed on mining and being a digital energy company. Swinging to a Profit as Efficiency Improves MARA Holdings Q3 Presentation A key factor influencing MARA's profitability is how efficient their mining has been. Above, the daily cost per petahash is shown, and they reported that in the past 10 quarters, this metric has improved by 35%. That is a major increase in compute efficiency even as energy remains a potential bottleneck for data centers in America. For Q3, the daily cost per petahash was $31.3, down 15% YoY. That should definitely play a part in boosting the bottom line. MARA Holdings Q3 Presentation Speaking of the bottom line, as you can see on the right, MARA swung from a loss in the year ago quarter to a decent income in this year's Q3. Back in 2024 Q3, the company lost $124.8 million, and so there was quite a large YoY improvement to $123.1 million in income. This shows the healthy revenue growth rate and the improved efficiency discussed above seem to have found their way to the bottom line. In addition, while revenues missed consensus estimates, MARA beat on adjusted EPS by $0.02, and so that indicates the company operated more efficiently than expected. Bitcoin Weakness to Weigh Data by YCharts MARA's business model is still very much tied to the fortunes of Bitcoin itself. Until early this month, Bitcoin held at a relatively high level. As this month has unfolded, significant weakness has been experienced, with the cryptocurrency now back below $100K and continuing its weakness down to the mid $95Ks. While this may offer the company an opportunity to acquire some Bitcoin at a lower price, investors should be prepared for a potentially weak Q4 in terms of financial results. In fact, investors have seemingly already reacted significantly to this Bitcoin weakness, as MARA stock has seen one month losses in excess of 40% as of now. AI is an Opportunity MARA Holdings Q3 Letter As shown in the above Statista chart, the global AI market is expected to grow to $1.005 trillion by calendar year 2031. That would be a more than fourfold expansion from 2025, demonstrating the massive potential of AI. MARA clearly wants in on this major opportunity. The company stated that they "see energy ownership as the foundation of competitive advantage in AI, just as it is in Bitcoin" and so they are aiming to build a "hybrid model" where Bitcoin and AI are integrated into a single platform. Overall, I see this as a good strategic decision. The expansion into HPC will allow for more growth opportunities in the coming years, with AI demand showing no clear signs of slowing down. That said, there will be significant competition, as many companies want in on this generational shift in computing. The market will likely be large enough for MARA to be a notable player, but they are likely to need to act quickly to maximize their odds of gaining traction. Valuation is Quite Low Data by YCharts The forward P/S ratio for MARA is currently at quite a low level when compared with historic readings, and I believe that creates an opportunity for investors right now. In today's analysis, MARA has been shown to be a solid company. In terms of their mining operations, both capacity and efficiency are in strong positions. As for the growth prospects of the business, as stated above, AI creates a very real opportunity for the company in the coming years, and so investors should also look forward to that. The cause of the valuation contraction is really just the weakness in the price of Bitcoin, as there isn't much going wrong inside the company. Bitcoin prices are a temporary headwind, and as MARA puts an increasing amount of emphasis on HPC, the stock will likely become less correlated with Bitcoin over time, and investors may see that as a positive. Also note that Seeking Alpha currently gives the stock an overall valuation rating of A+ relative to the IT sector, and so the valuation does seem to be cheap. As a whole, I would consider the stock's pullback as an opportunity to get into this computing play. Final Thoughts Overall, MARA's strong operational metrics show that the company is well-positioned for the future of computing, whether that's for AI or for crypto mining. As stated above, Bitcoin prices are, of course, weighing on the stock now, but this is just a temporary headwind. Internally, MARA is as strong as ever, and AI provides a new growth driver in the years to come. The valuation is really at a quite low level right now, and so I view this as a prime buy the dip opportunity in the stock.
