Earnings Recap — Q2 FY2026
CY Q3 2026 · Reported August 6, 2026 · Beat 1 of last 7 quarters
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MARA's expansion of its power portfolio to 4.8 GW, including the Matagorda County site and Long Ridge acquisition, positions it as a significant player in the AI infrastructure buildout, where power availability is the key constraint. The company's strategy of converting Bitcoin mining sites to AI/HPC campuses and its partnership with Starwood could accelerate the delivery of energized capacity to hyperscalers and AI-native companies. The Bitcoin-backed financing approach demonstrates a non-dilutive capital model for funding infrastructure acquisitions.
MARA reported Q2 FY2026 revenue of $175 million, down from $239 million in the prior year, as a 28% drop in Bitcoin's average price offset higher production. The company mined 2,420 BTC during the quarter, up 64 BTC YoY, and ended with 35,600 BTC on the balance sheet. A net loss of $611 million was driven largely by a $343 million unrealized mark-to-market adjustment on digital assets. The company advanced its digital infrastructure strategy by progressing the Long Ridge acquisition, securing $600 million in Bitcoin-backed credit facilities, and acquiring rights to a 2 GW site in Matagorda County, Texas. Adjusted EBITDA was negative $361 million, reflecting the Bitcoin price decline.
Management emphasized execution in the second half of FY2026, focusing on closing the Long Ridge acquisition (expected soon after FERC approval), signing at least 2 AI/HPC leases before year-end, and expanding Exaion's international presence. They expect the power portfolio to reach 4.8 GW, with Matagorda County adding up to 2 GW of potential capacity. The company plans to transition away from hosted mining as contracts expire (beginning Q3 2027 through Q1 2028), improving unit economics. G&A is expected to trend lower as cost savings from the reduction in force are realized. Management reiterated confidence in the Starwood partnership and expects to host an Investor Day later this year to showcase the infrastructure portfolio.
“The market has no shortage of ambition or investment. What it lacks is enough energized, permitted capacity in the right places available on the timeline customers can use.”
on Power scarcity
“We are funding a $1.5 billion enterprise value acquisition through a Bitcoin backed debt and assumption of Long Ridge's balance sheet. All non dilutive financings.”
on Capital discipline
“We have been surprised by the demand being greater than what we initially expected. At least the response from the tenants, but that is obvious given the fact that there is not a lot of available power, and we just happen to have a lot.”
on AI tenant demand
Has there been any feedback from federal, local, or state levels about the potential closing of Long Ridge? Are there hurdles that need to be done?
Frederick Thiel responded that no feedback has been received yet, but he does not expect any blockers. He cited recent FERC approvals for similar acquisitions and expects approval before year-end, likely sooner.
With the Texas audit process, are you getting additional interest or market repricing on your existing energized sites?
Frederick Thiel noted broad demand across multiple sites, with the Matagorda site being highly attractive. He explained that the audit process will flush out phantom requests, and MARA's site has no required utility infrastructure improvements, boosting confidence in progressing through the queue.
How should we think about the revenue opportunity from Exaion and HUM?
Frederick Thiel said HUM has contractual revenues but will not be material near-term, potentially an 8-digit annual business. Exaion revenues will be in the low 8 digits this year, with growth expected as it diversifies customers. He highlighted Exaion's strength in sovereign AI and open-source model deployment.