Marathon Digital (NASDAQ:MARA) Trading Down 1.4% Following Weak Earnings

Shares of Marathon Digital Holdings, Inc. (NASDAQ:MARA) traded down 1.4% during mid-day trading on Thursday following a dissappointing earnings announcement. The stock traded as low as $8.14 and last traded at $8.45. 45,536,944 shares traded hands during mid-day trading, an increase of 1% from the average session volume of 44,978,031 shares. The stock had previously closed at $8.57.

The business services provider reported ($4.52) earnings per share (EPS) for the quarter, missing analysts’ consensus estimates of ($0.23) by ($4.29). Marathon Digital had a net margin of 100.82% and a negative return on equity of 2.59%. The company had revenue of $202.31 million during the quarter, compared to analyst estimates of $250.74 million. During the same period in the prior year, the firm posted $1.24 EPS. Marathon Digital’s revenue was down 5.6% compared to the same quarter last year.

Marathon Digital News Summary

Here are the key news stories impacting Marathon Digital this week:

• Positive Sentiment: Marathon announced a strategic AI/infrastructure venture (Starwood partnership) to convert power capacity into AI and HPC data‑center capacity — a potential new, higher‑margin revenue stream that helps de‑correlate the business from Bitcoin price swings. Marathon Digital surges 13% on AI infrastructure venture
• Positive Sentiment: Sector momentum — including strong daily inflows into Bitcoin ETFs — lifted miner stocks and supported MARA into the session’s close/after‑hours. This flow backdrop can amplify positive news for miners. Trump-Linked Miner Reports Results, MARA Surges On AI Partnership
• Neutral Sentiment: Brokerage consensus remains constructive (consensus “Moderate Buy”), which could limit downside if execution on the AI pivot and mining operations track to plan. MARA Receives Consensus Rating of “Moderate Buy”
• Neutral Sentiment: The company issued its preliminary Q4/fiscal‑2025 results letter to shareholders (formal release/slide deck available), providing the official metrics investors are parsing. MARA Announces Fourth-Quarter and Fiscal Year 2025 Results
• Negative Sentiment: Quarterly results showed a steep EPS miss: reported loss per share of ($4.52) vs. consensus (~($0.23)), and revenue of $202.3M below estimates — driven largely by non‑cash markdowns on held Bitcoin. These accounting hits pressured the stock intraday. View Slide Deck
• Negative Sentiment: Analysts and press flagged increased scrutiny of Marathon’s Bitcoin‑centric strategy and accounting volatility — a reminder that large paper impairments and macro/trade uncertainty can produce outsized headline moves. Marathon Digital earnings loom as bitcoin strategy draws scrutiny

Analysts Set New Price Targets

MARA has been the subject of several analyst reports. Morgan Stanley started coverage on shares of Marathon Digital in a research note on Monday, February 9th. They issued an “underweight” rating and a $8.00 target price for the company. Piper Sandler cut their price target on shares of Marathon Digital from $26.00 to $16.00 and set an “overweight” rating for the company in a research note on Wednesday, January 14th. Weiss Ratings upgraded shares of Marathon Digital from a “sell (d+)” rating to a “hold (c-)” rating in a research note on Friday, February 20th. JPMorgan Chase & Co. dropped their target price on shares of Marathon Digital from $20.00 to $13.00 and set an “overweight” rating on the stock in a report on Monday, November 24th. Finally, Rosenblatt Securities cut their target price on shares of Marathon Digital from $25.00 to $22.00 and set a “buy” rating for the company in a research note on Wednesday, November 5th. Eight analysts have rated the stock with a Buy rating, three have given a Hold rating and one has issued a Sell rating to the company. Based on data from MarketBeat.com, the company has a consensus rating of “Moderate Buy” and an average price target of $21.00.

Insider Transactions at Marathon Digital

In related news, CFO Salman Hassan Khan sold 34,732 shares of the stock in a transaction that occurred on Monday, December 15th. The shares were sold at an average price of $11.48, for a total value of $398,723.36. Following the completion of the transaction, the chief financial officer owned 248,566 shares of the company’s stock, valued at $2,853,537.68. This represents a 12.26% decrease in their position. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is available at this link. Also, CEO Frederick G. Thiel sold 27,505 shares of the firm’s stock in a transaction that occurred on Tuesday, January 20th. The shares were sold at an average price of $10.80, for a total transaction of $297,054.00. Following the completion of the sale, the chief executive officer owned 3,517,566 shares in the company, valued at $37,989,712.80. This represents a 0.78% decrease in their position. The disclosure for this sale is available in the SEC filing. Insiders sold 133,247 shares of company stock valued at $1,325,255 in the last three months. Company insiders own 0.80% of the company’s stock.

Institutional Investors Weigh In On Marathon Digital

A number of hedge funds and other institutional investors have recently bought and sold shares of the company. Hollencrest Capital Management raised its position in Marathon Digital by 2,407.4% in the third quarter. Hollencrest Capital Management now owns 1,354 shares of the business services provider’s stock valued at $25,000 after purchasing an additional 1,300 shares during the last quarter. Estabrook Capital Management acquired a new position in shares of Marathon Digital in the second quarter valued at approximately $31,000. Bessemer Group Inc. raised its holdings in Marathon Digital by 56.8% in the 3rd quarter. Bessemer Group Inc. now owns 1,819 shares of the business services provider’s stock valued at $33,000 after buying an additional 659 shares during the last quarter. Eurizon Capital SGR S.p.A. acquired a new stake in Marathon Digital during the 4th quarter worth approximately $36,000. Finally, Hantz Financial Services Inc. grew its holdings in Marathon Digital by 344.8% during the 4th quarter. Hantz Financial Services Inc. now owns 5,022 shares of the business services provider’s stock worth $45,000 after acquiring an additional 3,893 shares during the last quarter. Institutional investors own 44.53% of the company’s stock.

Marathon Digital Stock Down 1.4%

The company has a debt-to-equity ratio of 0.63, a quick ratio of 2.09 and a current ratio of 2.09. The stock’s fifty day simple moving average is $9.35 and its two-hundred day simple moving average is $13.54. The stock has a market capitalization of $3.20 billion, a P/E ratio of 4.69 and a beta of 5.56.

About Marathon Digital

Marathon Digital Holdings, Inc is a digital asset technology company specializing in the mining and acquisition of bitcoin. Headquartered in Las Vegas, Nevada, the firm employs high-performance application-specific integrated circuit (ASIC) miners and proprietary software to secure the Bitcoin network and expand its crypto-mining footprint. Marathon Digital focuses on operational efficiency and scalability, while maintaining rigorous standards for regulatory compliance and corporate governance.

The company operates multiple large-scale mining facilities throughout North America, including sites in Texas, Montana and New York.