MARA Holdings Just Turned a $10M Loss into Profits—Is Bitcoin and AI the Secret? Find Out Now!

MARA Holdings Inc. (NASDAQ: MARA) is gaining attention as one of the top cryptocurrency stocks for long-term investment. On November 17, Bernstein reiterated a Hold rating on the company, setting a price target of $23.

Just a few days earlier, on November 4, MARA reported impressive third-quarter results, showcasing a 92% year-over-year increase in revenue to $252 million. This surge in revenue was driven by a significant rise in the company’s bitcoin holdings, which increased by 98% from 26,747 to 52,850 bitcoins at the end of the third quarter of 2024.

This revenue growth marked a noteworthy turnaround for MARA, as the company returned to profitability with a net income of $123 million, translating to $0.27 per share. This is a significant improvement from a net loss of $125 million or $0.42 per share during the same quarter last year. Additionally, MARA's adjusted EBITDA skyrocketed by 1,671% to $395.6 million.

During this quarter, MARA is not only focusing on bitcoin but is also diversifying its approach by expanding into the global artificial intelligence sector. The company made a strategic investment in Exaion, a developer and operator of secure, low-carbon cloud data centers. This move enhances MARA's offerings in the digital energy space, which is expected to provide high-margin, contracted cash flow. It signifies a shift from being a pure play bitcoin miner to becoming a more diversified digital infrastructure company.

"MARA’s large-scale power operations give us a distinct advantage, as the same energy and data center infrastructure that transforms energy into bitcoin will soon be used to produce intelligence," the company stated in a letter to shareholders. "To prove this, we deployed AI inference racks and compute at our Granbury site this quarter, the beginning of our effort to leverage MARA’s infrastructure for high-performance computer applications beyond Bitcoin mining."

As a digital asset technology company, MARA Holdings specializes in Bitcoin mining and related digital infrastructure. Its operations include running data centers to mine Bitcoin, maintaining a substantial treasury of bitcoin, and exploring solutions to energy and data center challenges, all while aiming to convert clean energy into economic value.

While there is considerable optimism surrounding MARA as an investment, analysts caution that there are other AI-focused stocks that may offer greater upside potential and less downside risk. For instance, firms are exploring AI stocks that stand to gain significantly from the onshoring trend and related tariffs from the Trump era. Investors interested in such opportunities might consider looking into reports on the best short-term AI stocks.

In the broader context, MARA's evolution comes as the cryptocurrency market continues to mature. With increasing scrutiny from regulators and fluctuations in bitcoin prices, companies like MARA must not only capitalize on current trends but also adapt to the rapidly changing landscape. The expansion into AI demonstrates a strategic foresight that could position MARA favorably in both the cryptocurrency and tech sectors.

As MARA Holdings moves forward, its ability to balance profitability with innovation will likely dictate its success in the increasingly competitive digital landscape. Investors will undoubtedly be keeping a close watch on the company's next moves as it navigates the dual challenges of the cryptocurrency market and the burgeoning AI industry.