MARA Holdings, Inc.
For the period ended Sep 30, 2025. Filed Nov 4, 2025.
View on SEC.govAbout this filing
A company's report for each of its first three quarters. The financial statements are not audited. It shows how the business has moved since the last annual report, and what management says changed.
Sep 30, 2025 · Filed Nov 4, 2025
MARA$6.35+8.1%Stored close · as of Nov 6, 2026
What changed in Management’s Discussion and Analysis?
Read the current filingPrevious report: 10-Q
Period ended 2025-06-30; filed 2025-07-29.
0001507605-25-000018
Item 2. Management’s Discussion and Analysis of Financial Condition and Results of OperationsCurrent report: 10-Q
Period ended 2025-09-30; filed 2025-11-04.
0001507605-25-000028
Item 2. Management’s Discussion and Analysis of Financial Condition and Results of OperationsThe baseline is this issuer’s latest earlier reporting period of the same form that was filed before the current report. A previous 10-Q is a different quarter, not a year-over-year comparison. Amendments are excluded.
Compared 173 previous paragraphs and 193 current paragraphs.
68 unchanged; 81 reworded; 40 added; 22 removed; 2 previous and 4 current paragraphs rearranged.
Tables are not compared: 14 previous and 13 current tables excluded. Dates, whitespace, punctuation and numbering changes are ignored; changes to financial figures remain significant.
A changed paragraph is not evidence that risk increased or decreased. An unchanged paragraph does not establish that risk stayed the same.
Added paragraphs (40)
Current report
•On July 25, 2025, we issued an aggregate principal amount of $1.0 billion of 0.0% Convertible Senior Notes due 2032 (the “August 2032 Notes”) and in connection with the issuance, repurchased approximately $19.4 million principal amount of a portion of the December 2026 Notes. Refer to Note 14– Debt in the notes to our Condensed Consolidated Financial Statements, for further information.
Current report
•We used approximately $100.0 million of proceeds from the August 2032 Notes to purchase 860 bitcoin at an average price of $116,117 per bitcoin.
Current report
•On August 11, 2025, we announced the signing of an investment agreement to acquire a 64% ownership interest in Exaion SAS, a subsidiary of EDF Pulse Ventures, specializing in high-performance computing and secure cloud/AI infrastructure, for approximately $168.0 million, with the option to increase our ownership in the future. Subject to regulatory approvals and customary closing conditions, the acquisition is intended to expand our capabilities into AI/HPC infrastructure and enhance our ability to deliver secure, scalable cloud solutions.
Current report
•During the quarter, we initiated a restructuring plan of our technology operations to better align resources with our strategic priorities, moving from a centralized unit to embedding technology across the business. As part of this plan, we exited our two-phase immersion cooling product line, which represented a majority of our technology operations, incurring $20.9 million in restructuring costs during the quarter.
Current report
•We revised our bitcoin investment strategy and may opt to sell a portion of the bitcoin produced from our mining operations to fund operational costs, while continuing to hold the majority of our bitcoin for long-term investment purposes.
Current report
•We deployed the first ten AI racks at our Granbury site within an air-cooled modular data center, launching our first operational hybrid AI and Bitcoin mining site.
Current report
•On November 4, 2025, we announced our entry into a letter of intent with MPLX LP (NYSE: MPLX), a separately traded public company formed by Marathon Petroleum Corporation (NYSE: MPC), to expand our access to lower-cost natural gas and scalable power capacity to support the development of on-site power generation and compute infrastructure.
Current report
(3) Total energy capacity represents the maximum amount of electricity our facilities can utilize for our operations.
Current report
Historically, we have held bitcoin produced from our mining operations or purchased on the open market on our Condensed Consolidated Balance Sheets. During the quarter, we revised our bitcoin investment strategy and may opt to sell a portion of the bitcoin produced from our mining operations to fund ongoing operating expenses. In addition, as part of our digital asset management strategy, we may, from time to time, buy or sell bitcoin to generate incremental return or manage exposure to market conditions.
Current report
In addition to energy costs incurred at our owned mining sites, third-party hosting and other energy costs remain a significant part of our overall cost structure and are subject to similar volatility and market dynamics. For the three months ended September 30, 2025, these costs totaled $75.7 million, reflecting both the expansion of our hosted mining operations and higher variable energy pricing at third-party facilities. Our hosting arrangements typically include energy charges, as well as maintenance and management fees for colocation and operational support. Such hosting arrangements have contractual commitments extending over the next three years and minimum future payments of approximately $385.5 million.
Current report
We continue to actively manage these costs by renegotiating contracts, evaluating alternative providers and transitioning certain hosted sites to self-owned mining sites as agreements expire. This approach is intended to enhance operational flexibility, mitigate exposure to energy price volatility and support long-term profitability as our business continues to scale.
Current report
Digital Asset Management
Current report
Our digital asset management strategy resulted in an increase in the fair value of our bitcoin holdings of approximately $343.3 million and $1.0 billion during the three and nine months ended September 30, 2025, respectively, reflecting appreciation in the market price of bitcoin. In addition, we generated interest income from our bitcoin lending activities and recognized net investment losses from our bitcoin trading activities.
Current report
In prior periods, we presented certain bitcoin yield metrics to illustrate trends in the growth of our bitcoin holdings. Beginning this quarter, these metrics are no longer presented, as management determined they are no longer meaningful given our decision to sell bitcoin from production to fund operations and our focus on the active management of our digital assets rather than passive bitcoin ownership.
Current report
The $118.9 million increase in Bitcoin mining revenue was primarily driven by an 88% increase in the average price of bitcoin mined, which contributed $113.3 million, in addition to a $5.5 million increase from bitcoin production during the three months ended September 30, 2025.
Current report
Costs and operating expenses
Current report
Purchased energy, Operating and maintenance and Third-party hosting and other energy costs
Current report
Operating and maintenance costs for the three months ended September 30, 2025 were $26.3 million compared to $9.4 million in the prior year period, an increase of $16.9 million or approximately 181%, primarily due to higher shipping and warehouse expenses and increased labor costs compared to the prior year period.
Current report
Restructuring costs
Current report
During the third quarter of 2025, management committed to and initiated a restructuring plan in order to support data center initiatives and sovereign AI solutions, by reallocating our technology resources. Restructuring costs incurred for the three months ended September 30, 2025 were $20.9 million, primarily consisting of asset write-off charges, contract termination expenses and facility exit costs. The majority of the restructuring plan actions were completed during the quarter. There were no such expenses in the prior year period.
Current report
Other income (loss)
Current report
Other of $1.1 million for the three months ended September 30, 2025 was primarily due to net losses on bitcoin trading activities, including trading within our SMA account and internal digital asset management activities, partially offset by a reduction to the allowance for credit loss resulting from an updated credit assessment and a gain on extinguishment of debt related to the December 2026 Notes in connection with the issuance of the August 2032 Notes.
Current report
Nine Months Ended September 30, 2025 Compared to the Nine Months Ended September 30, 2024
Current report
The $287.4 million increase in Bitcoin mining revenue was primarily driven by a 73% increase in the average price of bitcoin mined, which contributed $285.8 million, in addition to a $1.6 million increase from bitcoin production during the nine months ended September 30, 2025.
Current report
Costs and operating expenses
Current report
Purchased energy, Operating and maintenance and Third-party hosting and other energy costs
Current report
Purchased energy costs for the nine months ended September 30, 2025 totaled $128.3 million compared to $59.2 million in the prior year period, an increase of $69.1 million or approximately 117%. The increase was primarily driven by the expansion of our owned mining sites through acquisitions, higher overall energy consumption and the growth in our total hashrate to 60.4 EH/s. Our Cost per Petahash per day improved from $37.7 to $29.5, or approximately 22%, compared to the prior year period. Purchased energy costs per bitcoin for our owned mining sites were $36,118 compared to $27,633 in the prior year period, primarily due to higher network difficulty resulting from an increase in global hashrate and the April 2024 halving event.
Current report
Taxes other than on income were $7.9 million for the nine months ended September 30, 2025 compared to $6.0 million in the prior year period.
Current report
Early termination expenses of $5.0 million for the nine months ended September 30, 2025 were related to the termination of a management agreement at one of our owned mining facilities, which subsequently transitioned to internal management. In the prior year period, early termination expenses of $38.1 million primarily related to the termination of customer hosting agreements and the forgiveness of an outstanding receivable balance of a customer acquired in the GC Data Center Acquisition.
Current report
Restructuring costs
Current report
Restructuring costs were $20.9 million for the nine months ended September 30, 2025, primarily consisting of asset write-off charges, contract termination expenses and facility exit costs incurred in connection with our restructuring plan. There were no such expenses in the prior year period.
Current report
Other of $1.9 million for the nine months ended September 30, 2025 was primarily due to net losses within our SMA and internal bitcoin trading activities, partially offset by a net gain on investments of $12.4 million, a reduction to the allowance for credit loss and a gain on extinguishment of debt related to the December 2026 Notes.
Current report
Income tax benefit (expense)
Current report
(2) Acquisition and integration costs are reported in “General and administrative” on the Condensed Consolidated Statements of Operations.
Current report
(4) Excludes interest income earned from our bitcoin lending activities of $9.6 million and $22.7 million for the three and nine months ended September 30, 2025, respectively.
Current report
During the third quarter of 2025, we made a strategic change to our bitcoin investment approach and may opt to sell a portion of the bitcoin produced from our mining operations to support our ongoing operating expenses.
Current report
We entered into an investment agreement on August 11, 2025, to acquire an approximate 64% ownership interest in Exaion SAS, a subsidiary of EDF Pulse Ventures, for approximately $168.0 million, subject to regulatory and antitrust approvals and other customary closing conditions. The agreement also provides the option to increase ownership up to 75% by 2027 through additional contingent payments of up to approximately $127.0 million, based on the achievement of specified performance milestones.
Current report
Income Taxes
Current report
The primary objectives of accounting for income taxes are to recognize the amount of income taxes payable or refundable for the current year, and to recognize deferred tax liabilities and assets for the future tax consequences of events that have been recognized in our financial statements or tax returns. We account for income taxes in accordance with ASC 740, Income Taxes, using the asset and liability method. Under this method, deferred tax assets and liabilities are calculated based on enacted tax rates and are recognized for the expected future tax consequences of temporary differences between the financial reporting and tax basis of assets and liabilities and for operating losses and tax credit carryforwards. The effect on deferred tax assets and liabilities of a change in tax rates is recognized in operations in the period that includes the enactment date. Management must make assumptions, judgments and estimates to determine our income tax benefit or expense and deferred tax assets and liabilities. We recognize tax positions when they are more likely than not to be sustained. Recognized tax positions are measured at the largest amount of benefit greater than 50% likely of being realized. Each period, we evaluate tax positions and adjust related tax assets and liabilities in light of changing facts and circumstances.
Current report
On July 4, 2025, President Trump signed into law the One Big Beautiful Bill Act (“OBBBA”), a comprehensive tax reform package containing a wide array of provisions impacting businesses. Among other changes, the OBBBA extends or permanently enacts several business and international tax measures originally introduced under the Tax Cuts and Jobs Act of 2017, which were previously scheduled to expire at the end of 2025. The enactment of the OBBBA did not have a material impact on our effective tax rate for the quarter ended September 30, 2025, and we do not expect it to materially affect our effective tax rate for 2025.
Removed paragraphs (22)
Previous report
•As of June 30, 2025 31% of our bitcoin holdings had been activated by our bitcoin asset management strategy.
Previous report
•During the quarter, we announced strategic partnerships with LG-backed PADO AI and TAE Power Solutions focused on developing grid-responsive platforms that dynamically stabilize inference compute, minimize energy waste, and unlock the next generation of field-deployable, sovereign edge AI infrastructure. In July 2025, we announced a target of reaching 75 EH/s by the end of 2025.
Previous report
NM - Not meaningful
Previous report
Bitcoin Asset Management
Previous report
The following table presents supplemental information related to our Treasury activities for the three and six months ended June 30, 2025 and 2024:
Previous report
(1) BTC Yield is a key performance indicator that represents the percentage change period-to-period of the ratio between our bitcoin holdings and our Assumed Fully Diluted Shares Outstanding. Assumed Fully Diluted Shares Outstanding refers to the aggregate of our actual shares of common stock outstanding as of the end of the applicable period plus all additional shares that would result from the assumed conversion of all outstanding convertible notes inclusive of the potential make-whole fundamental change provision, exercise of all outstanding warrants and settlement of all outstanding restricted stock units and performance-based restricted stock units.
Previous report
Under our bitcoin asset management strategy, our bitcoin investment approach resulted in an improvement of $1.2 billion and $683.7 million on the Company’s bitcoin holdings during the three and six months ended June 30, 2025, respectively, simultaneously generating related interest and investment income.
Previous report
Costs and operating expenses (income)
Previous report
Purchased energy, third-party hosting and other energy and operating and maintenance costs
Previous report
Operating and maintenance costs during the three months ended June 30, 2025 totaled $22.4 million compared to $15.6 million in the prior year period, an increase of $6.8 million or approximately 43%. The increase in operating and maintenance costs was primarily due to an increase in repair and maintenance fees associated with our mining operations and shipping and warehouse costs compared to the prior year period.
Previous report
RESULTS OF OPERATIONS
Previous report
Six Months Ended June 30, 2025 Compared to the Six Months Ended June 30, 2024
Previous report
Costs and operating expenses (income)
Previous report
Purchased energy, third-party hosting and other energy and operating and maintenance costs
Previous report
Purchased energy costs during the six months ended June 30, 2025 totaled $85.2 million compared to $32.2 million in the prior year period, an increase of $53.0 million or approximately 165% primarily driven by the expansion of our owned mining sites through acquisitions and our total hashrate growth to 57.4 EH/s. For the six months ended
Previous report
June 30, 2025, our Cost per Petahash per day improved to $29.4 from $37.8, or approximately 22%, compared to the prior year period. For the six months ended June 30, 2025, Purchased energy costs per bitcoin for our owned mining sites was $34,723 compared to $24,581 in the prior year period, primarily due to higher difficulty levels and the April 2024 halving event.
Previous report
Impairment of assets
Previous report
Due to a severe storm, we experienced irreparable damage to certain mining equipment at our Garden City mining site and as such, recognized an impairment of $26.0 million for the six months ended June 30, 2025. Should we successfully receive insurance proceeds, they will be recognized as a gain in the period in which they are received. There were no such impairments in the prior year period.
Previous report
Taxes other than on income were $5.5 million for the six months ended June 30, 2025 compared to $4.1 million in the prior year period.
Previous report
In the first quarter of 2024, we entered into termination and transition agreements with the operator from the GC Data Center Acquisition, for an early termination fee of $19.5 million. In addition, we entered into an agreement for the early termination of a data center hosting agreement with one of its customers, upon which we forgave an outstanding accounts receivable balance of $8.3 million. There were no such expenses in the current period.
Previous report
Other income
Previous report
Income tax expense
Reworded paragraphs (81)
Previous wording
Unless otherwise indicated or the context otherwise requires, references to “MARA,” “we,” “us,” and the “Company” refer to MARA Holdings, Inc. and its consolidated subsidiaries.
Current wording
Unless otherwise indicated or the context otherwise requires, references to “MARA,” “we,” “us,” “our” and the “Company” refer to MARA Holdings, Inc. and its consolidated subsidiaries.
Previous wording
MARA is a vertically integrated digital energy and infrastructure company that leverages high-intensity compute, such as bitcoin mining, to monetize excess energy and optimize power management. We are focused on two key priorities: strategically growing by shifting our model toward low-cost energy with more efficient capital deployment and bringing to market a full suite of solutions for data centers and edge inference, including energy management, load balancing and advanced cooling. As of June 30, 2025, our total energy portfolio consisted of approximately 1.7 gigawatts (“GW”) of capacity with 15 data centers deployed across North America, the Middle East, Europe, and Latin America. We believe we are one of the world’s largest publicly traded Bitcoin mining companies, with the majority of our production in the United States.
Current wording
MARA is a vertically integrated digital energy and infrastructure company that leverages high-intensity compute, such as Bitcoin mining, to monetize excess energy and optimize power management. We are focused on two key priorities: strategically growing by shifting our model toward low-cost energy with more efficient capital deployment and working to develop and deploy a full suite of solutions for data centers and edge inference, including energy management and load balancing. As of September 30, 2025, our total energy portfolio consisted of approximately 1.8 gigawatts (“GW”) of capacity with 18 data centers deployed across North America, the Middle East, Europe, and Latin America. We believe we are one of the world’s largest publicly traded Bitcoin mining companies, with the majority of our production in the United States.
Previous wording
•As of June 30, 2025, we hit 57.4 exahashes per second (“EH/s”), a record high for MARA.
Current wording
•As of September 30, 2025, we reached a new record high of 60.4 exahashes per second (“EH/s”).
Previous wording
•In May 2025, we entered into a separately managed account (“SMA”) trading arrangement with Two Prime to actively manage 2,000 of our bitcoin holdings with the goal of generating meaningful returns. Subsequent to the quarter end, we formalized a minority interest in Two Prime to strengthen our risk-optimized yield strategies and further align with a key partner.
Current wording
Subsequent to the quarter ended September 30, 2025:
Previous wording
In response to an increased demand for bitcoin, we anticipate additional mining operators entering the market and existing competitors scaling their operations, which will grow the blockchain’s network hashrate and difficulty associated with solving a block. As the overall hashrate and difficulty of the Bitcoin network increases, we will need to continue growing our hashrate to remain competitive.
Current wording
In response to an increased demand for bitcoin, we anticipate additional mining operators entering the market and existing competitors scaling their operations, which will grow the blockchain’s network hashrate and difficulty associated with solving a new block. To maintain our competitive position, we will need to expand our hashrate accordingly and continue investing in efficient mining operations.
Previous wording
During the six months ended June 30, 2025, we mined 4,644 bitcoin, a decrease of 225 bitcoin, or 5%, from the prior year period. The decrease was primarily due to the result of the April 2024 halving event, temporary deployment of older miners while damages were remediated and the increase in global hashrate.
Current wording
During the nine months ended September 30, 2025, we mined 6,788 bitcoin, a decrease of 150 bitcoin, or 2%, from the prior year period. The decrease was primarily due to the result of the April 2024 halving event, an increase in the global hashrate and network difficulty level, the temporary deployment of less efficient miners while damages at our mining site were remediated and power curtailment limitations.
Previous wording
As of June 30, 2025, we owned approximately 450,000 mining rigs globally, including our share of mining rigs from our equity method investee, the ADGM entity, with an energized hashrate of approximately 57.4 EH/s. To stay competitive, we remain focused on strategically deploying additional mining rigs and scaling our operations, while managing our fleet as it ages along the obsolescence curve. In addition, we continuously evaluate strategic opportunities to support our growth strategy and seek to enhance operational efficiencies by utilizing efficient mining rigs and securing contracts with price protection clauses.
Current wording
As of September 30, 2025, we owned approximately 455,000 mining rigs globally, including our share of mining rigs from our equity method investee, the ADGM entity, with an energized hashrate of approximately 60.4 EH/s. To stay competitive, we remain focused on strategically deploying additional mining rigs and scaling our operations, while managing our fleet as it ages along the obsolescence curve. In addition, we continuously evaluate strategic opportunities to support our growth strategy and seek to enhance operational efficiencies by utilizing efficient mining rigs and securing contracts with price protection clauses.
Previous wording
Our revenues are generally comprised of block rewards earned in bitcoin as a result of successfully solving blocks, and transaction fees earned for verifying transactions in support of the blockchain. After the halving event of April 2024, the current reward for each solved block is equal to 3.125 bitcoin plus transaction fees. The impacts of halving on our results of operations and financial condition may be exacerbated by changes in the market value of bitcoin, which has historically been subject to significant volatility. For example, as of June 30, 2025, the price of a bitcoin was $107,173, compared to $62,668 as of June 30, 2024.
Current wording
Our revenues are generally comprised of block rewards earned in bitcoin as a result of successfully solving blocks, and transaction fees earned for verifying transactions in support of the blockchain. After the halving event of April 2024, the current reward for each solved block is equal to 3.125 bitcoin plus transaction fees. The impacts of halving on our results of operations and financial condition may be exacerbated by changes in the market value of bitcoin, which has historically been subject to significant volatility. For example, as of September 30, 2025, the price of a bitcoin was $114,068, compared to $63,301 as of September 30, 2024.
Previous wording
We continue to retain all bitcoin mined in our operations or purchased, in line with our bitcoin investment approach. As of June 30, 2025, we held approximately 49,951 bitcoin, including 15,550 bitcoin under our bitcoin asset management strategy, on our Condensed Consolidated Balance Sheets with acarrying value of approximately$5.3 billion. The fair value of our bitcoin may be materially impacted as the market value of bitcoin fluctuates. Management believes, given our recent investments, coupled with our relative position and liquidity, we are well-positioned to execute on our long-term growth strategy.
Current wording
As of September 30, 2025, we held approximately 52,850 bitcoin, including 17,357 bitcoin under our digital asset management strategy, on our Condensed Consolidated Balance Sheets, with acarrying value of approximately$6.0 billion. The fair value of our bitcoin may be materially impacted as the market value of bitcoin fluctuates.
Previous wording
The following table presents our bitcoin digital asset holdings (including bitcoin under our bitcoin asset management strategy) and the fair value per bitcoin:
Current wording
The following table presents our bitcoin digital asset holdings (including bitcoin under our digital asset management strategy) and the fair value per bitcoin:
Previous wording
Energy cost is the most significant cost driver for mining and represented 34.1% and 36.1%, as a percentage of our owned mining revenues for the three and six months ended June 30, 2025, respectively. This excludes energy costs from third-party hosted sites.
Current wording
Energy cost is the most significant cost driver for Bitcoin mining and represented 34.3% and 35.4%, as a percentage of our owned mining revenues for the three and nine months ended September 30, 2025, respectively. This excludes energy costs from third-party hosted sites.
Previous wording
Energy cost can be highly volatile, cyclical and sensitive to geopolitical events and weather conditions, such as winter storms and earthquakes, which impact supply and demand for power regionally. All of our owned mining sites and our hosted miners are subject to variable prices and market rate fluctuations with respect to wholesale energy costs. Such costs are governed by various power purchase agreements, and energy prices can change hour to hour and by location. While this renders energy prices less predictable, it also gives us greater ability and flexibility to actively manage the energy we consume with a goal of increasing profitability and energy efficiency. When such events occur, we may curtail our operations to avoid using power at increased rates. Although we do not receive significant compensation for curtailment, the dispatchable load of our bitcoin mining operations helps balance the grid and provides electricity to communities when in need. The average price of direct energy we paid for our owned facilities was $0.04 per kilowatt hour (“kWh”) for both the three and six months ended June 30, 2025.
Current wording
Energy cost can be highly volatile, cyclical and sensitive to geopolitical events and weather conditions or natural disasters, such as weather-related storms and earthquakes, which impact supply and demand for power regionally. All of our owned mining sites and our miners at third-party hosted sites are subject to variable prices and market rate fluctuations with respect to wholesale energy costs. Such costs are governed by various power purchase agreements, and energy prices can change hour to hour and by location. While this renders energy prices less predictable, it also gives us greater ability and flexibility to actively manage the energy we consume with a goal of increasing profitability and energy efficiency. When prices rise or supply is constrained, we may curtail our operations to avoid using power at increased rates. Although we do not receive significant compensation for curtailment, the dispatchable load of our Bitcoin mining operations helps balance the grid and provides electricity to communities when in need. The average price of direct energy we paid for our owned facilities was $0.04 per kilowatt hour (“kWh”) for both the three and nine months ended September 30, 2025.
Previous wording
(3) Purchased energy costs per kWh is calculated using the amounts paid to power providers for power consumed divided by the kWh consumed related to our owned bitcoin mining operations. In the first quarter of 2024, this metric was not meaningful as we were in the early stages of our transition to a vertically integrated operating model focused on owned infrastructure. This transition began in January 2024, when we commenced acquiring data centers to support owned mining operations, which initially represented a limited portion of our overall operations during the period.
Current wording
(3) Purchased energy costs per kWh is calculated using the amounts paid to power providers for power consumed divided by the kWh consumed related to our owned Bitcoin mining operations.
Previous wording
As the second largest corporate holder of bitcoin globally, our strategy focuses on enhancing shareholder value through disciplined, risk-managed deployment of bitcoin beyond passive holdings. We view bitcoin as a productive asset, a source of liquidity, yield, and long-term capital appreciation. By activating a portion of our holdings through lending, structured trading arrangements, and collateralized financing, we seek to generate incremental income that helps fund operations, expand infrastructure, and reduce our cost of capital. Our strategy balances upside participation in bitcoin appreciation with near-term cash flow generation, while maintaining substantial liquidity to respond to market opportunities.
Current wording
As the second-largest corporate holder of bitcoin globally, our strategy is focused on enhancing shareholder value through disciplined, risk-managed deployment of bitcoin beyond passive holdings. We view bitcoin as a productive asset, a source of liquidity, returns, and long-term capital appreciation. By activating a portion of our holdings through lending, structured trading arrangements, and collateralized financing, we seek to generate incremental income to help fund operations, expand infrastructure, and reduce our cost of capital. Our strategy balances upside participation in bitcoin appreciation with near-term cash flow generation, while maintaining substantial liquidity to respond to market opportunities.
Previous wording
Subsequent to the quarter end, we formalized a minority interest in Two Prime, an external full-service registered advisor, to strengthen our risk-optimized yield strategies and further align with a key partner. To a lesser extent, we have also used bitcoin as a collateral to borrow under lines of credit.
Current wording
In July 2025, we formalized a minority interest in Two Prime LLC (“Two Prime”), an external full-service registered investment advisor, to strengthen our risk-optimized return strategies and further align with a key partner. In addition to our structured trading initiatives, we have also deployed a portion of our bitcoin holdings through lending arrangements designed to generate incremental return and, to a lesser extent, used bitcoin as collateral to borrow under lines of credit.
Previous wording
As of June 30, 2025, we held a total of 49,951 bitcoin, including 15,550 bitcoin that were loaned, actively managed or pledged as collateral. As such, approximately 31% of our total holdings were activated through our bitcoin asset management strategy.
Current wording
As of September 30, 2025, we held a total of 52,850 bitcoin, including 17,357 bitcoin that were loaned, actively managed or pledged as collateral. As such, approximately 33% of our total holdings were activated through our digital asset management strategy.
Previous wording
The Company’s core bitcoin asset management is comprised of the following activities:
Current wording
The Company’s core digital asset management strategy is comprised of the following activities:
Previous wording
Beginning late 2024, we began lending arrangements with various counterparties to generate additional yield on our bitcoin holdings. As of June 30, 2025, we had loaned out a total of 7,877 bitcoin that generated $6.8 million and $13.1 million of interest income for the three and six months ended June 30, 2025, respectively. We assess the creditworthiness of counterparties prior to lending and reassess periodically. Loaned bitcoin is subject to recall upon short notice.
Current wording
Beginning in late 2024, we began lending arrangements with various counterparties to generate additional returns on our bitcoin holdings. As of September 30, 2025, we had loaned out a total of 10,377 bitcoin that generated $9.6 million and $22.7 million of interest income for the three and nine months ended September 30, 2025, respectively. We assess the creditworthiness of counterparties prior to lending and reassess periodically. Loaned bitcoin is subject to recall upon short notice.
Previous wording
During the second quarter of 2025, we entered into an SMA agreement with Two Prime and transferred 500 bitcoin in mid-May 2025, followed by an additional 1,500 bitcoin in late June 2025. As of June 30, 2025, a total of 2,004 bitcoin were held and actively managed within the SMA. The 500 bitcoin transferred in mid-May 2025 generated an additional 4 bitcoin, or approximately $0.4 million. The late June transfer of bitcoin occurred too late in the quarter to meaningfully contribute to returns. The SMA is managed within defined parameters intended to generate returns while limiting downside risk, and it maintains liquidity with short-term notice. In addition, our bitcoin asset management team may, from time to time, engage in various bitcoin-denominated trades such as options, futures, swaps and spot transactions to generate additional returns on our bitcoin holdings.
Current wording
During the second quarter of 2025, we entered into a separately managed account (“SMA”) agreement with Two Prime and transferred 2,000 bitcoin. During the quarter ended September 30, 2025, the SMA incurred a net loss of approximately 101 bitcoin, or $10.9 million, primarily attributable to trading activities. As of September 30, 2025, a total of 1,903 bitcoin were held and actively managed within the SMA. The SMA is managed within defined parameters intended to generate returns while limiting downside risk, and it maintains liquidity with short-term notice.
Previous wording
As of June 30, 2025, 5,669 bitcoin were pledged as collateral in connection with $350.0 million of outstanding borrowings under the Line of Credit bearing interest rates between 8.85% and 10.5% per annum.
Current wording
As of September 30, 2025, 5,077 bitcoin were pledged as collateral in connection with $350.0 million of outstanding borrowings under the Line of Credit bearing interest rates between 8.85% and 10.5% per annum.
Previous wording
The following tables summarize our capital appreciation and income generated from bitcoin holdings as it relates to our bitcoin asset management strategy:
Current wording
The following tables summarize our capital appreciation and income generated from bitcoin holdings as it relates to our digital asset management strategy:
Previous wording
(1) Change in fair value of bitcoin for the six months ended June 30, 2025 totaled $683.7 million and includes the “Change in fair value of digital assets” of $451.9 million, excluding a loss of $1.4 million related to other digital assets, resulting in $453.2 million attributable to bitcoin, plus the “Change in fair value of digital assets - receivable, net” of $230.5 million.
Current wording
(1) Change in fair value of bitcoin for the three months ended September 30, 2025 totaled $343.3 million and includes the “Change in fair value of digital assets” of $234.2 million, excluding a loss of $0.2 million related to other digital assets, resulting in $234.4 million attributable to bitcoin, plus the “Change in fair value of digital assets - receivable, net” of $108.9 million.
Previous wording
(2) Interest income differs from the amount reported as “Interest income” on the Condensed Consolidated Statements of Operations, as it excludes $2.8 million of interest earned on cash and cash equivalents for the three months ended June 30, 2025.
Current wording
(2) Interest income differs from the amount reported as “Interest income” on the Condensed Consolidated Statements of Operations, as it excludes $8.1 million of interest earned on cash and cash equivalents for the three months ended September 30, 2025.
Previous wording
(3) Investment income, net is associated with the return earned from the SMA agreement and various bitcoin-denominated trades and is reported in “Other” on the Condensed Consolidated Statements of Operations.
Current wording
(3) Investment loss, net is associated with the return from the SMA agreement and various bitcoin-denominated trades and is reported in “Other” on the Condensed Consolidated Statements of Operations.
Previous wording
(1) Change in fair value of bitcoin for the three months ended June 30, 2025 totaled $1.2 billion and includes the “Change in fair value of digital assets” of $846.0 million, excluding $1.1 million related to other digital assets, resulting in $844.9 million attributable to bitcoin, plus the “Change in fair value of digital assets – receivable, net” of $346.5 million.
Current wording
(1) Change in fair value of bitcoin for the nine months ended September 30, 2025 totaled $1.0 billion and includes the “Change in fair value of digital assets” of $686.1 million, excluding a loss of $1.6 million related to other digital assets, resulting in $687.7 million attributable to bitcoin, plus the “Change in fair value of digital assets - receivable, net” of $339.3 million.
Previous wording
(2) Interest income differs from the amount reported as “Interest income” on the Condensed Consolidated Statements of Operations, as it excludes $8.5 million of interest earned on cash and cash equivalents for the six months ended June 30, 2025.
Current wording
(2) Interest income differs from the amount reported as “Interest income” on the Condensed Consolidated Statements of Operations, as it excludes $16.6 million of interest earned on cash and cash equivalents for the nine months ended September 30, 2025.
Previous wording
(1) Includes 47 and 97 bitcoin representing our share of the equity method investee, the ADGM entity, for the three months ended June 30, 2025 and 2024, respectively.
Current wording
(1) Includes 29 and 46 bitcoin representing our share of the equity method investee, the ADGM entity, for the three months ended September 30, 2025 and 2024, respectively.
Previous wording
(2) Average price of BTC mined is calculated using BTC mining revenue divided by the bitcoin production, excluding our share of the bitcoin produced for the equity method investee, the ADGM entity.
Current wording
(2) “Average price of BTC” mined is calculated using Bitcoin mining revenue divided by the quantity of bitcoin produced during the period, excluding our share of the bitcoin produced for the equity method investee, the ADGM entity.
Previous wording
We generated revenues of $238.5 million for the three months ended June 30, 2025, compared to $145.1 million in the prior year period. The $93.3 million, or approximately 64%, increase in revenues was primarily driven by an increase in bitcoin mining revenue partially offset by a decrease in other digital asset mining revenue and hosting services. The $99.6 million increase in bitcoin mining revenue was primarily driven by a 50% increase in the average bitcoin price, which contributed $76.6 million, in addition to a $23.1 million increase from bitcoin production.
Current wording
We generated revenues of $252.4 million for the three months ended September 30, 2025, compared to $131.6 million in the prior year period. The $120.8 million, or approximately 92%, increase in revenues was primarily driven by an increase in Bitcoin mining revenue and, to a lesser extent, other revenue, partially offset by a decrease in other digital asset mining revenue.
Previous wording
Purchased energy costs during the three months ended June 30, 2025 totaled $41.7 million compared to $26.1 million in the prior year period, an increase of $15.6 million or approximately 60%, primarily driven by the expansion of our owned mining sites and our total hashrate growth to 57.4 EH/s. Purchased energy costs consist of power expenses paid to power providers for power consumed related to our owned bitcoin mining operations and up to a lesser extent energy generated and consumed by us. For the three months ended June 30, 2025, our Cost per Petahash per day improved to $28.7 from $37.8, approximately 24%, compared to the prior year period. For the three months ended June 30, 2025, Purchased energy costs per bitcoin for our owned mining sites was $33,735 compared to $31,065 in the prior year period, primarily due to higher network difficulty due to an increase in global hashrate and the 2024 halving event.
Current wording
Purchased energy costs for the three months ended September 30, 2025 totaled $43.1 million compared to $27.0 million in the prior year period, an increase of $16.1 million, or approximately 60%. The increase was primarily driven by the expansion of our owned mining sites and the growth in our total hashrate to 60.4 EH/s, a 64% increase from the prior year period. Purchased energy costs consist of power expenses paid to power providers for power consumed related to our owned Bitcoin mining operations and, to a lesser extent, energy generated and consumed directly by us. Despite higher overall energy costs, our Cost per Petahash per day improved from $37.0 to $31.3, or approximately 15%, in the current period. However, for the three months ended September 30, 2025, Purchased energy costs per bitcoin for our owned mining sites were $39,235 compared to $32,433 in the prior year period, primarily due to higher network difficulty resulting from an increase in global hashrate.
Previous wording
Third-party hosting and other energy costs during the three months ended June 30, 2025 totaled $69.0 million compared to $54.0 million in the prior year period, an increase of $15.0 million or approximately 28%. These costs consist of colocation services related to third-party hosted sites and energy expenses related to mining other digital assets. The increase was primarily due to the addition of energized miners at third-party hosted facilities.
Current wording
Third-party hosting and other energy costs for the three months ended September 30, 2025 totaled $75.7 million compared to $63.7 million in the prior year period, an increase of $12.0 million, or approximately 19%. These costs primarily consist of colocation services related to third-party hosted sites and energy expenses related to mining other digital assets. The increase was primarily due to the addition of energized miners and the expansion of third-party hosted facilities compared to the prior year period.
Previous wording
General and administrative expenses were $92.9 million for the three months ended June 30, 2025, compared to $53.5 million in the prior year period. These expenses consist of stock based compensation, professional and legal fees and other people and office expenses. The $39.5 million, or approximately 74% increase was driven by the continued strategic expansion of our business and our pivot from asset-light to a vertically integrated model. The increase reflects the scaling of our operations, higher personnel costs associated with headcount growth from 109 to 201 and increased professional and administrative fees in support of our expanded footprint. Stock-based compensation expense increased by $24.5 million, primarily due to the 2025 long-term incentive plan (“LTIP”) grants, an accounting charge due to the modification to the 2024 LTIP awards at the end of 2024, and an increase in headcount. This increase was partially offset by reduced expense associated with the 2023 LTIP awards on a comparative basis.
Current wording
General and administrative expenses were $85.3 million for the three months ended September 30, 2025, compared to $58.7 million in the prior year period. These expenses consist of stock-based compensation, professional and legal fees and other personnel and office expenses. The $26.6 million, or approximately 45% increase, was driven by the continued strategic expansion of our business and our pivot from asset-light to a vertically integrated model, partially offset by lower marketing-related costs in the current period. The increase reflects the scaling of our operations, higher personnel costs associated with headcount growth from approximately 130 to 228 and increased professional and administrative fees in support of our expanded footprint. Stock-based compensation expense increased by $14.3 million, primarily due to the 2025 long-term incentive plan (“LTIP”) grants, an accounting charge due to the modification to the 2024 LTIP awards at the end of 2024, and an increase in headcount. This increase was partially offset by reduced expense associated with the 2023 LTIP awards on a comparative basis.
Previous wording
Depreciation and amortization during the three months ended June 30, 2025 totaled $161.7 million compared to $107.5 million in the prior year period. The $54.2 million, or approximately 50% increase, was primarily due to the deployment of additional mining rigs and an overall increased scale of business.
Current wording
Depreciation and amortization for the three months ended September 30, 2025 totaled $167.3 million compared to $101.9 million in the prior year period. The $65.5 million, or approximately 64%, increase was primarily due to the deployment of additional mining rigs and an overall increased scale of business.
Previous wording
We recognized a gain on digital assets of $846.0 million for the three months ended June 30, 2025 compared to a loss of $148.0 million in the prior year period. The $994.0 million increase was primarily driven by the rise in bitcoin price.
Current wording
We recognized a gain on digital assets of $234.2 million for the three months ended September 30, 2025 compared to a gain of $30.1 million in the prior year period. The $204.2 million increase was primarily attributable to the rise in the price of bitcoin and increase in our bitcoin holdings compared to the prior year period.
Previous wording
We recognized a gain on the change in fair value of derivative instrument of $20.3 million for the three months ended June 30, 2025 compared to a gain of $38.3 million in the prior year period. We adjusted the fair value of the commodity swap contract acquired in the GC Data Center Acquisition, which meets the definition of a derivative instrument and is remeasured at fair value at the end of each reporting period, with changes primarily due to movements in electricity forward curve prices during the respective periods.
Current wording
We recognized a loss on the change in fair value of derivative instrument of $4.4 million for the three months ended September 30, 2025 compared to a loss of $58.2 million in the prior year period. The change primarily relates to the remeasurement of the commodity swap contract acquired in the GC Data Center Acquisition, which meets the definition of a derivative instrument and is remeasured at fair value at the end of each reporting period. Changes in fair value were primarily driven by fluctuations in electricity forward curve prices during the respective periods.
Previous wording
Taxes other than on income were $2.4 million for the three months ended June 30, 2025 compared to $1.6 million in the prior year period. Taxes other than on income consist primarily of property and sales and use taxes.
Current wording
Taxes other than on income were $2.4 million for the three months ended September 30, 2025 compared to $2.0 million in the prior year period. Taxes other than on income consist primarily of property, sales and use taxes.
Previous wording
During the three months ended June 30, 2024, we finalized an agreement to terminate a data center hosting agreement with a customer acquired in the GC Data Center Acquisition prior to the maturity date of such hosting agreement for $5.7 million, net of a deposit refund. There were no such expenses in the current period.
Current wording
Early termination expenses of $5.0 million for the three months ended September 30, 2025 were related to the termination of a management agreement at one of our owned mining facilities, which subsequently transitioned to internal management. In the prior year period, early termination expenses of $10.3 million were related to the termination of a data center hosting agreement with a customer acquired in the GC Data Center Acquisition prior to the maturity date of such hosting agreement, net of a deposit refund.
Previous wording
Research and development expenses were $8.5 million for the three months ended June 30, 2025 compared to $3.8 million in the prior year period. The $4.7 million, or approximately 122% increase, was primarily due to ongoing innovation initiatives and development expenses to support our strategic expansion.
Current wording
Research and development expenses were $8.7 million for the three months ended September 30, 2025 compared to $2.8 million in the prior year period. The $5.9 million, or approximately 210% increase, was primarily due to ongoing innovation initiatives and development activities to support our strategic expansion, following the reallocation of resources related to our restructuring plan.
Previous wording
We recognized a gain on digital assets - receivables, net of $346.5 million for the three months ended June 30, 2025, due to changes in the fair value associated with our bitcoin loaned, actively managed and pledged as collateral. There were no such activities in the prior year period.
Current wording
We recognized a gain on digital assets - receivables, net of $108.9 million for the three months ended September 30, 2025, resulting from an increase in the fair value associated with our bitcoin loaned, actively managed and pledged as collateral. There were no such activities in the prior year period.
Previous wording
During the three months ended June 30, 2025, we recorded our share of net loss for our 20% interest in the ADGM Entity of $0.9 million, compared to nearly zero in the prior year period. Our share of the ADGM Entity’s operating results included earnings from the production of 47 bitcoin and approximately $3.2 million of depreciation and amortization during the three months ended June 30, 2025, whereas in the prior year period, our share of the ADGM Entity’s operating results included earnings from production of 97 bitcoin and approximately $3.5 million of depreciation and amortization.
Current wording
During the three months ended September 30, 2025, we recorded our share of net loss for our 20% interest in the ADGM Entity of $1.7 million, compared to a loss of $2.1 million in the prior year period. Our share of the ADGM Entity’s operating results included earnings from the production of 29 bitcoin and approximately $3.2 million of depreciation and amortization during the three months ended September 30, 2025, while in the prior year period, our share of the ADGM Entity’s operating results included earnings from production of 46 bitcoin and approximately $3.1 million of depreciation and amortization.
Showing the first 40 of 81 pairs. Open the source sections for the rest.
Rearranged current paragraphs (4)
Current report — wording carried from elsewhere
Management believes, given our recent investments, coupled with our relative position and liquidity, we are well-positioned to execute on our long-term growth strategy.
Current report — wording carried from elsewhere
In addition, our digital asset management team may, from time to time, engage in various bitcoin-denominated trades such as options, futures, swaps and spot transactions to generate additional returns on our bitcoin holdings.
Current report — wording carried from elsewhere
(3) Investment loss, net is associated with the return from the SMA agreement and various bitcoin-denominated trades and is reported in “Other” on the Condensed Consolidated Statements of Operations.
Current report — wording carried from elsewhere
As of September 30, 2025, the Company had $350.0 million outstanding under its Line of Credit, with periodic maturities due within the next twelve months.
Rearranged previous paragraphs (2)
Previous report — wording carried elsewhere
During the six months ended June 30, 2025 and 2024, revenue from hosting services was $2.3 million and $29.4 million, respectively, a decrease of $27.1 million due to planned terminations of various hosting agreements following the GC Data Center Acquisition in 2024.
Previous report — wording carried elsewhere
2024, depreciation and amortization includes approximately $0.2 million and $0.9 million, respectively, of amortization that was previously classified within “General and administrative” on the Condensed Consolidated Statements of Operations.