MARA, CleanSpark revenue drops 18% as miners pivot to AI compute

MARA Holdings and CleanSpark both posted double-digit revenue declines as of Aug. 6, with MARA's first-quarter revenue down 18 percent to $174.6 million as Bitcoin mining economics deteriorated.

"The sector is absorbing a sizeable crypto-related hit today while committing capital to becoming an AI and data center infrastructure business," Gautam Chhugani, an analyst at Bernstein who rates MARA Hold with a $17 price target, said.

MARA's net loss widened to $1.26 billion in the first quarter, driven by more than $1 billion in non-cash fair value declines on its Bitcoin holdings, which fell 26 percent. The company's cost per acquired Bitcoin rose to $40,047 in the quarter, reflecting global hashrate growth, even as energy costs at owned sites held near $0.04 per kilowatt-hour. CleanSpark, with a market cap of $3.6 billion, reported a similar double-digit revenue decline, while rival Riot Platforms trades at $8.1 billion.

The declines show pressure on traditional mining revenue models as both companies pivot toward AI infrastructure. MARA is acquiring Long Ridge Energy & Power for $1.5 billion, gaining a 505-megawatt gas plant and 1,600 acres for data center development, and runs a joint venture with Starwood targeting more than 1 gigawatt of initial capacity. The company reports second-quarter earnings Aug. 6, with Wall Street expecting non-GAAP EPS of $0.25 on revenue of $209.62 million.

The AI pivot could give miners a second growth engine, but execution risk is high. MARA's 4.8-gigawatt power pipeline and 72.2 exahash per second operational hashrate position it to lease data center capacity to AI tenants, yet the build-out is capital intensive and funding depends on Bitcoin monetization. Analyst price targets range from $5.50 at Morgan Stanley to $24, reflecting a split view on whether the transition can offset mining losses.

This article is for informational purposes only and does not constitute investment advice.