Fred Thiel Says MARA Holdings Will Leverage Bitcoin Holdings For 'Financial Flexibility' As Firm Pivots Beyond Pure-Play Mining

MARA Holdings Inc. (NASDAQ:MARA) CEO Fred Thiel said Thursday the company plans to adopt an opportunistic approach, leveraging Bitcoin (CRYPTO: BTC) to enhance “financial flexibility” where appropriate.

MARA Records Paper Losses On Bitcoin

During MARA’s fourth-quarter earnings call, Thiel admitted that recent volatility in Bitcoin price has affected the sector’s sentiments and aspects of the company’s trading performance.

The company reported a fourth-quarter net loss of $1.7 billion, primarily due to a $1.5 billion hit from the fair value markdown on its Bitcoin holdings. The apex cryptocurrency tumbled 23% during the quarter.

“Historically, we retained the majority of the Bitcoin we mined as a long-term strategic asset,” the CEO said. “Looking ahead, we expect to continue taking an opportunistic approach using Bitcoin to enhance financial flexibility where appropriate.”

‘Mara No Longer Simply A Bitcoin Miner’

These decisions, he added, would be guided by “market conditions and capital allocation priorities,” with a focus on fortifying the balance sheet and boosting long-term shareholder value.

“MARA is no longer simply a Bitcoin miner. We are already well down the path of building an energy-dominant digital infrastructure platform,” Thiel said.

MARA’s Data Center Development Deal

This strategic pivot comes alongside MARA’s partnership with global investment firm Starwood Capital Group to convert and scale select sites into digital infrastructure for enterprise, hyperscale and AI customers.

The companies said they expect to deliver approximately one gigawatt of near-term IT capacity with a pathway to more than 2.5 gigawatts. 

MARA mined 2,011 BTC and purchased an additional 1,670 as part of its treasury strategy during the quarter. Meanwhile, revenue and earnings figures fell short of analyst forecasts.

Price Action: MARA shares surged 15.50% in pre-market trade on Friday after closing 1.40% lower at $8.45 during Thursday’s regular trading session. Year-to-date, the stock has slid nearly 6%.

Benzinga’s Edge Stock Rankings show the stock with a robust short-term price uptrend, but weaker performance in medium- and long-term periods.

Disclaimer: This content was partially produced with the help of Benzinga Neuro and was reviewed and published by Benzinga editors.

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