Marathon Digital Holdings (NASDAQ: MARA) reported a staggering net loss of $1.7 billion for the fourth quarter of 2025, a dramatic reversal from the $528 million profit recorded in the same period a year earlier. The primary driver of the loss was a $1.5 billion non-cash write-down on the value of its Bitcoin holdings, triggered by an approximate 30% decline in BTC's price during the quarter.
Revenue for the quarter fell 6% year-over-year to $202.3 million, down from $214.4 million in Q4 2024. The company's adjusted EBITDA swung to a negative $1.49 billion, compared to a positive $796 million a year ago. For the full year 2025, Marathon posted a net loss of $1.3 billion, versus a net income of $541 million in 2024, starkly illustrating the volatility amplified by mark-to-market accounting for large Bitcoin treasuries.
Despite the financial hit, Marathon's Bitcoin holdings grew. The company ended 2025 with 53,822 BTC on its balance sheet, a 20% year-over-year increase. At a year-end valuation of roughly $87,498 per Bitcoin, this stash was worth approximately $4.7 billion. However, about 28% of these holdings (15,315 BTC) were loaned out or pledged as collateral, generating $32.1 million in interest income for the year.
Operationally, Marathon's energized hashrate reached a record 66.4 exahash per second (EH/s) in Q4, a 25% annual increase, though it fell short of its 75 EH/s target as management emphasized capital discipline. Bitcoin production for the quarter was 2,011 BTC, down 6% year-over-year due to higher network difficulty and seasonal energy pressures.
In a significant strategic shift, Marathon announced a joint venture with Starwood Digital Ventures, an affiliate of Barry Sternlicht's Starwood Capital Group. The partnership aims to develop hyperscale, enterprise, and AI-capable data centers, with a target of delivering approximately 1 gigawatt of near-term IT capacity and a pathway to exceed 2.5 GW over time. Marathon can invest up to 50% in these projects, signaling a move toward recurring infrastructure revenue to reduce exposure to Bitcoin's price swings.
Further underscoring this pivot, Marathon recently updated its executive compensation in an SEC filing, tying stock awards to megawatt capacity and contracted recurring revenue instead of solely mining output. The filing also included a new change-of-control provision that has fueled market speculation about a potential takeover.
