Is MARA Holdings Stock Still a Buy After a Post-Earnings Drop?

Investors were watching MARA Holdings, Inc. MARA following its third-quarter 2025 earnings release, expecting the results to shape its next price move. A larger-than-expected loss caused shares to decline by roughly 6% afterward.With a business model in transition, investors are questioning whether the stock remains a buy, hold, or sell after the latest quarter. Let's try to find out.Expanding Beyond Bitcoin MiningMARA’s third quarter marked tangible progress toward diversification. The company advanced its transition from traditional cryptocurrency mining toward an integrated digital infrastructure that supports blockchain and AI computing workloads. Installation of the company’s first AI inference racks was completed at the Granbury site, signaling readiness to accommodate both Bitcoin and AI inference operations.Additionally, MARA expanded its energy control footprint through power generation and data center partnerships in West Texas. The initial 400-megawatt campus can scale to as much as 1.5 gigawatts, a major advantage for reducing power costs and improving efficiency in future digital operations. International initiatives are also underway, with the company targeting half of its total revenue from international markets by 2028, strengthening geographic diversification.Financial Results: Strong Growth Amid Cost SensitivityMARA reported revenues of $252.4 million, up 92% year over year and 3% above the Zacks Consensus Estimate. Although it posted a loss of 32 cents per share, missing expectations by 23%, this still represented an improvement from a loss of 38 cents a year earlier, reflecting operational gains despite ongoing volatility in Bitcoin prices.Image Source: MARA HoldingsBitcoin production reached 2,144 BTC, while an additional 2,257 BTC were purchased, bringing total holdings to nearly 53,000 BTC, nearly double from the prior year. The company also recorded a $343.1 million gain on digital assets, benefiting from Bitcoin’s stronger valuation environment.Image Source: MARA HoldingsOperationally, approximately 70% of its megawatt capacity now comes from owned and operated sites, improving control over power costs. Purchased energy cost per bitcoin was $39,235, while the daily cost per petahash decreased 15% year over year, indicating better cost efficiency.Image Source: MARA HoldingsMARA ended the quarter with more than $7 billion in liquid assets, offering ample flexibility to fund infrastructure projects, pursue acquisitions, and manage volatility in digital asset prices.Strategic Outlook: Linking Energy, AI, and BlockchainLooking ahead, MARA aims to integrate energy generation, blockchain validation, and AI processing within a single operational ecosystem. This strategy focuses on building cost-efficient, high-capacity energy infrastructure that can simultaneously support cryptocurrency mining and AI workloads.The company is also emphasizing data center design innovations such as direct-to-chip cooling to enhance scalability and lower long-term maintenance costs, a more efficient approach than conventional immersion cooling systems. These developments position MARA to leverage its energy expertise in emerging high-performance computing applications.Why MARA Is Still a Hold?MARA currently appears positioned for continued volatility, making it suitable for a Hold strategy. Near-term earnings are likely to remain uneven due to Bitcoin’s price swings and the heavy capital requirements of infrastructure expansion. The recent bottom-line miss and projected loss of 23 cents compared with earnings of $1.24 in the year-ago quarter reflect near-term margin pressure and the challenge of balancing aggressive investment with profitability.However, the company’s ongoing diversification into AI and blockchain infrastructure, coupled with a robust liquidity position, provides a solid foundation for long-term growth. While its EV/EBITDA ratio of 75.51 indicates valuation concerns, MARA’s strategic pivot toward integrated energy and AI operations could justify patience.Investors may consider holding the stock while adopting a wait-and-watch approach until clearer visibility emerges on the financial benefits of its AI initiatives and cost-efficiency improvements.MARA currently carries a Zacks Rank #3 (Hold).You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.Stocks to Watch: RIOT, COINRiot Platforms RIOT, another major Bitcoin miner, has also prioritized scaling energy-efficient operations to lower production costs. However, unlike MARA, Riot Platforms has historically leaned toward a higher sell-through rate of its mined Bitcoin, focusing more on near-term liquidity. While RIOT remains an important player in U.S. mining, its approach underscores the uniqueness of MARA’s asset-accumulation philosophy.Coinbase Global COIN provides another relevant comparison. As a leading cryptocurrency exchange, Coinbase does not mine Bitcoin but benefits from transaction activity and institutional adoption of digital assets. Like MARA, Coinbase has built resilience by diversifying its revenue streams and leveraging its role as a long-term enabler of crypto adoption. Although MARA and Coinbase operate in different segments, both reflect the importance of balancing current revenues with longer-term strategic positioning in the crypto economy.Beyond Nvidia: AI's Second Wave Is HereThe AI revolution has already minted millionaires. But the stocks everyone knows about aren't likely to keep delivering the biggest profits. Little-known AI firms tackling the world's biggest problems may be more lucrative in the coming months and years.See "2nd Wave" AI stocks now >>Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Marathon Digital Holdings, Inc. (MARA): Free Stock Analysis Report Riot Platforms, Inc. (RIOT): Free Stock Analysis Report Coinbase Global, Inc. (COIN): Free Stock Analysis ReportThis article originally published on Zacks Investment Research (zacks.com).Zacks Investment ResearchWeiter zum vollständigen Artikel bei Zacks Weiter zum vollständigen Artikel bei Zacks