US-based cryptocurrency mining company MARA Holdings announced its financial results for the first quarter of 2024. Although the company continues to produce bitcoin, the focus of its activities is gradually changing. The financial and strategic moves it has announced recently show that the company’s main focus has shifted from mining to artificial intelligence and high-performance IT infrastructure.
MARA’s new strategy
The company stated in its first quarter balance sheet that they do not plan to make large-scale new investments in special ASIC devices used in bitcoin mining. Large device purchases in the past were seen as an important indicator to measure growth plans in the mining industry. The lack of a new machine purchase indicates that MARA is placing less priority on increasing pure mining capacity.
Instead, the company is shifting its energy infrastructure towards artificial intelligence and high-performance computing. MARA wants to continue producing bitcoin by establishing a new infrastructure in addition to its existing mining activities, and to be able to redefine the way energy is used as the needs for artificial intelligence and similar technologies increase. According to their own statements, approximately 90% of the company’s total mining capacity can be used as AI and IT infrastructure in the future.
Financial results and sales
MARA’s revenue in the first quarter of 2024 decreased by 18% compared to the same period last year, falling to 174.6 million dollars. The net loss increased to $1.3 billion, and most of this loss was due to the loss of value of 38,689 bitcoins held. The news stated that bitcoin lost 17% of its value in the same period.
In the company statement, it was stated that “A total of 1.5 billion dollars of bitcoin sales were made in the first quarter to increase liquidity and pay off debt.” This amount also includes financing to buy back convertible bonds through a large-scale sale at the end of the period, amounting to $1.1 billion.
Bitcoin Treasuries data showed that MARA fell to the fourth position among publicly traded companies holding the most bitcoins. The company was previously in the top two in this field.
Evolving business model and new partnerships
The company’s business model change is not just in words; It is now supported by new agreements. MARA has partnered with Starwood Capital, one of the leading real estate investment companies in the USA. It also shook hands with Long Ridge Energy & Power to purchase a natural gas power plant and data center campus in Ohio for $1.5 billion. The company aims to have this facility reach the capacity to support over 600 megawatts of artificial intelligence-based workload over time.
Growth in the field of mining has not stopped completely. In the first quarter of this year, MARA had energy reaching 72.2 exahash per second, an increase of 33% on an annual basis. The company produced more bitcoins than in the previous quarter, issuing a total of 2,247 units of bitcoins; Last quarter, this number was 2,011.
The results show that MARA continues to view bitcoin mining as important, but is increasingly shifting its priority to the use of energy in high value-added technology areas.
