Marathon posts $1.3B loss Bitcoin’s 18% slide cuts Q1 revenue by $35M
Key receivers
Marathon Holdings posted a net loss of $1.3 billion in Q1 2026 due to an 18 percent decline in the average price of bitcoin.The 33% increase in hash rate to 72.2 EH/s reflects high mining competition and high costs.Marathon sells $1.5 billion in bitcoin to fund strategic pivot to AI and release 30% of debt.
Increase in operating costs
Digital infrastructure company Marathon Holdings has attributed a decline in revenue in the first quarter of 2026 to a weaker US dollar. bitcoin at the time. According to a May 11 letter to shareholders, revenue for the quarter was $174.6 million, down $39.3 million from $213.9 million in the first quarter of 2025.
The letter showed an average discount of 18 percent. bitcoin Of the reduction, $33.1 million was accounted for, with $2.5 million attributed to the reduction. bitcoin Production. The remaining $3.7 million is said to be due to a decrease in other income. The loss occurred despite a 33% increase. HashrateIt increased from 54.3 EH/s to 72.2 EH/s in the first quarter of 2025.
Reduced revenue, combined with increased operating expenses, led Marathon to post a net loss of $1.3 billion in the quarter. In the same period last year, the company posted a net loss of $533.4 million, or $1.55 per diluted share, meaning that operating expenses increased by $729 million in the first three months of 2026.
“The increase in net loss of $729.0 million was primarily due to an increase in operating loss of $520.4 million, which was largely unfavorable. bitcoin of ($1.0 billion) in market mark-up adjustments and restructuring costs of $45.9 million in the quarter,” the letter said.
Marathon's latest loss-making quarter comes at a critical juncture as the company looks to transform itself beyond just passing itself on. Crypto mining and into the rapidly expanding artificial intelligence (AI) infrastructure market. The transition shows a broad trend between them Bitcoin Miners face tight margins, high operating costs, and increased uncertainty in the post-halving environment.
Meanwhile, Marathon has leveraged it in addition to directing more resources to AI-enabled data centers. bitcoin Holdings to cover retirement at a discount of 30% of the variable debt held. The action is said to have slowed down. UseIt reduced potential future liquidity and improved Marathon's “ability to allocate capital to high-return strategic opportunities.”
“For the quarter, we sold nearly $1.5 billion bitcoin. These funds were used to purchase the 2030 and 2031 Notes at a discount of more than $1 billion and to reduce our line of credit by $200 million,” the letter stated.
Marathon also refinanced its $150 million line of credit at an interest rate of 7%, down from the 10.5% it previously paid.
Although diversifying from Bitcoin miningThere is a marathon to reduce the debt by generating income bitcoin It reflects the belief in cryptocurrency as an important reserve of value. Thus, at the end of the quarter, 35,303 marathons were held bitcoin9,995 bitcoins including what was pledged as a loan or collateral. In the year During the first quarter of 2026, he issued 2,247 BTC, bringing the value of his bitcoin holdings to about $2.4 billion, based on a spot price of $68,222 per bitcoin.
