MARA Bitcoin write-down results in a huge loss of 1.7 billion, and Starwood's AI joint venture pushes stock price up by 15%

Bitcoin mining company MARA Holdings announced its Q4 2025 financial results after the market close on February 26, 2026, recording a net loss of $1.7 billion, primarily due to a roughly 30% decline in Bitcoin prices in Q4, which led to a $1.5 billion reduction in the fair value of digital assets. However, the company also announced a joint venture with Starwood Capital Group to develop AI data centers, a move driven by news that caused its stock to surge over 15% after hours.

Q4 Financial Breakdown: Bitcoin Write-Downs Drag Down Overall Performance

(Source: The Block)

MARA’s Q4 revenue was $202.3 million, down 6% year-over-year (from $214.4 million last year). The net loss of $1.7 billion contrasts sharply with last year’s net profit of $528.3 million, mainly due to the decrease in Bitcoin market value: Bitcoin fell about 30% during the quarter, directly reducing the fair value of the company’s digital assets by $1.5 billion. Adjusted EBITDA was negative $1.49 billion, compared to positive $796 million in the same period last year.

Notably, Q4 marked MARA’s first period since 2022 without utilizing its at-the-market (ATM) stock issuance program, instead funding operations through partial Bitcoin sales, indicating a strategic shift in financing approach.

Operationally, MARA’s hash rate increased 25% year-over-year to 66.4 EH/s, but actual production declined: 2,011 Bitcoin mined in Q4, down from 2,144 in Q3. The cost of energy per Bitcoin surged from $31,608 last year to $48,611, mainly due to network difficulty growth outpacing hash rate expansion.

AI Transformation Announcement: Starwood JV Sparks Investor Confidence

Alongside the financial report, MARA announced a joint venture with Starwood Capital Group to develop large-scale AI data centers within the latter’s power-rich campuses. The initial target is to support approximately 1 gigawatt (GW) of IT capacity, with plans to expand to over 2.5 GW in the future.

Management characterized this deal as a continuation of MARA’s transformation from a pure Bitcoin miner to an integrated energy and digital infrastructure company. Bitcoin mining will serve as a flexible workload base, while AI computing capabilities will open new revenue streams. This AI transformation signal has been more positively received by the market than the financial results themselves.

Key Q4 and Year-End Data for MARA

• Net Loss: $1.7 billion (vs. net profit of $528.3 million last year)
• Digital Asset Fair Value Reduction: $1.5 billion (due to ~30% Bitcoin decline in the quarter)
• Hash Rate: 66.4 EH/s (up 25% YoY)
• Bitcoin Mined in Q4: 2,011 BTC (down from 2,144 BTC in Q3)
• Energy Cost per Bitcoin: $48,611 (vs. $31,608 last year)
• Year-End Holdings: 53,822 BTC, with a market value of about $4.7 billion; total cash and BTC holdings approximately $5.3 billion
• Bitcoin Holdings Rank: Second-largest publicly traded Bitcoin holder globally, after Strategy

Frequently Asked Questions

Does MARA’s $1.7 billion loss indicate worsening financial health?

The loss mainly results from accounting write-downs of Bitcoin’s fair value, not actual cash losses. MARA still holds 53,822 BTC and about $5.3 billion in cash and digital assets. Last year’s net profit was driven by unrealized gains from Bitcoin appreciation; both figures reflect fair value changes, not operational profits.

How significant is the Starwood joint venture, and why did it trigger a stock surge?

The joint venture aims to support about 1 GW of IT capacity initially, with future expansion beyond 2.5 GW, broadening MARA’s business from Bitcoin mining to large-scale AI infrastructure. The market’s positive valuation expectation for this AI pivot, along with the 15% after-hours increase, reflects investor optimism about the new business direction.

Why did MARA cease using the ATM stock issuance plan in Q4?

Q4 marked MARA’s first period since 2022 without utilizing the ATM plan, instead funding operations through Bitcoin sales. This decision shows the company’s proactive approach to avoid equity dilution during a period of stock price pressure, aiming to protect existing shareholders rather than a passive response.