MARA Holdings still has in its coffers 35,303 Bitcoin valued at roughly $2.84 billion, making it the fourth largest corporate Bitcoin holder in the world. But that position comes after the company sold a significant chunk of its reserves — and investors took notice.
A Rough Quarter By The NumbersMARA’s stock dropped 5% during Tuesday’s trading session, touching an intraday low of $11.74 before closing around $12.65. After-hours trading brought another 1.85% decline.
About $1 billion of the proceeds were used to reduce the company’s convertible debt load from $3.3 billion to $2.3 billion, a reduction of roughly 30%. That transaction generated a $71 million gain from debt extinguishment.
About 90% of its non-hosted mining capacity can reportedly be converted into AI and IT infrastructure. The company said its strategy centers on placing new infrastructure alongside existing Bitcoin mining operations, allowing it to generate revenue from power assets while drawing on its operational experience in mining.
The company is also cutting 15% of its workforce, a move expected to save $12 million annually.
The biggest move, though, is the acquisition of Long Ridge Energy from FTAI Infrastructure. The deal is valued at close to $1.5 billion, including about $785 million in debt, and marks the largest acquisition in MARA’s history.
Long Ridge operates a 505-megawatt combined-cycle gas power plant in Ohio and sits on more than 1,600 contiguous acres. MARA projects $144 million in annualized EBITDA from the asset.
Stock Performance In ContextFeatured image from Unsplash, chart from TradingView
