MARA pivots from Bitcoin mining to AI infrastructure; sells $1.5 billion in BTC and posts $1.26 billion Q1 loss
MARA pivoted from Bitcoin mining toward AI infrastructure and sold 20,880 Bitcoin for $1.5 billion in Q1 2026. The company reported a Q1 2026 net loss of $1.26 billion, more than double the $533 million loss a year earlier, while revenue declined 18% year‑over‑year to $175 million. Further details on debt reduction, the acquisition of Long Ridge Energy, a 15% workforce reduction and a dual-use strategy to convert mining capacity into AI and IT infrastructure appear in following sections.
Between March 4 and March 25, 2026, MARA sold 15,133 Bitcoin for approximately $1.1 billion to fund convertible note repurchases. From those March sales, $1.0 billion was applied to reduce convertible debt, lowering the outstanding balance by roughly 30% from about $3.3 billion to about $2.3 billion. The company recognized a $71 million gain on extinguishment related to the repurchases of the convertible notes.
The March transactions were part of a wider Q1 2026 program in which MARA sold 20,880 Bitcoin for $1.5 billion. Proceeds from the Bitcoin sales were also used to help fund MARA’s acquisition of Long Ridge Energy. The Long Ridge acquisition was valued at nearly $1.5 billion and included the assumption of at least $785 million of debt.
MARA completed its largest acquisition to date by agreeing to acquire Long Ridge Energy from FTAI Infrastructure for nearly $1.5 billion, a transaction described in the company’s disclosures as the firm’s largest to date. The acquisition terms include the assumption of at least $785 million of Long Ridge-related debt as part of the overall consideration. Long Ridge operates a 505-megawatt combined-cycle gas power plant located in Ohio on more than 1,600 acres, according to the transaction details. The company reported that Long Ridge is expected to generate $144 million in annualized EBITDA.
Other sections of the report provide related financing, convertible debt reduction and operational integration details that accompany this transaction and its financial presentation.
MARA is cutting 15% of its workforce to achieve $12 million in annualized cost savings and has halted large-scale ASIC purchases. “Going forward, we do not expect to pursue large-scale ASIC purchases. Our approach will remain selective, targeted, and grounded in clear economic return.”
The company is implementing a dual-use strategy under which roughly 90% of its non-hosted mining capacity is convertible into AI and IT infrastructure, enabling flexibility in how sites and power are used.
“Our strategy centers on co-locating new infrastructure with existing Bitcoin mining operations, allowing us to monetize power assets immediately while leveraging the operational discipline and infrastructure expertise that mining provides.”
“This approach creates flexibility: we can generate revenue today through Bitcoin mining while preserving the option to redirect power toward AI and critical IT loads as those opportunities mature on the same sites.”
MARA remains the fourth-largest corporate Bitcoin holder with 35,303 BTC valued at $2.84 billion. After the Q1 disclosures, MARA shares were down more than 5% intraday to about $12.65, briefly dipping to $11.74, while the stock was up 32% over the prior month. The company is undertaking a strategic transition from Bitcoin mining to AI infrastructure alongside significant financial restructuring, including sizable Bitcoin sales, a reduction in convertible debt and the acquisition of Long Ridge Energy.
