Mara Holdings (MARA 3.51%), one of a clutch of cryptocurrency mining businesses pushing deeper into data center operations, picked the wrong Tuesday to release its first-quarter earnings. The company missed on both the top and bottom lines, which was compounded by declines in leading coins and tokens.
Crypto crush
Those results were made public after market close on Monday. They revealed that Mara Holdings suffered a 18% year-over-year decline in revenue to $174.6 million.
Its net loss under generally accepted accounting principles (GAAP) deepened considerably -- thanks to a significant non-cash write-down of its digital assets -- to $1.3 billion ($3.31 per share), compared with the first quarter 2025's $533 million shortfall.
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The bottom-line result was particularly problematic, as it was much deeper in the red than the consensus analyst estimate of only $1.41 per share. But Mara Holdings missed on the top line, too, falling short of the average pundit projection of nearly $182 million.
Although Mara Holdings is assertive in building out its data center business (and has inarguably demonstrated progress), it remains largely a Bitcoin mining business. That's a reason why the company's 26% decrease in Bitcoin holdings wasn't met with great investor enthusiasm. On top of that, the holdings it does possess took a hit on Tuesday, as the popular coin's price slumped.
NASDAQ: MARA
Key Data Points
A new bargain play?
I wouldn't give up on Mara Holdings, though, as I think it's further along than some peers with its diversification efforts. For those who believe companies like this can transform into successful data center players, Mara Holdings might be an attractive post-earnings bargain buy now.
