MARA Holdings Buyback Boosts Shares: What Investors Need to Know

Shares of MARA Holdings Inc (NASDAQ:MARA) are trading higher on Tuesday, a day after the company reported third-quarter results that showed a sharp revenue decline but a swing to profit. The rebound comes after the stock hit a 52-week low of $5.69 last Thursday.

• MARA Holdings stock is among today’s top performers. Why are MARA shares rallying?

MARA Posts Revenue Decline, Big Profit

MARA reported on Monday that third-quarter revenue fell 35% year-over-year to $164.2 million. Net income rose to $632.1 million, including an $885.3 million fair-value gain on the company’s bitcoin. MARA mined 2,247 bitcoin in the quarter and increased its hash rate by 18%.

According to Benzinga Pro, diluted EPS of $1.28 beat the expected loss of 20 cents per share, but revenue came in below expectations.

After the quarter closed, the board authorized up to $500 million in share repurchases, and the company repaid $750 million in bitcoin-backed loans. The filing showing the $500 million buyback appears to be helping boost shares Tuesday.

MARA said it has cut total debt by $1.4 billion this year, and the buyback authorization suggests management believes the company’s shares are undervalued.

MARA Shifts Its Focus to Power and AI

The bigger story is where MARA is heading. On the earnings call, CFO Salman Khan said the company owns and operates about 1 gigawatt of power capacity, with a roadmap to scale beyond 4 gigawatts. He added that MARA has secured the "power, partnerships and capital" needed to deliver "long-term shareholder value."

Last week, MARA received approval for its acquisition of energy firm Long Ridge Energy & Power LLC, a deal expected to quadruple its owned power-generation capacity. Khan said the company can pursue a "multi-gigawatt build opportunity" using the liquidity it already holds in bitcoin and cash. Management also pointed to the flexibility of its power assets, which lets it move from bitcoin mining toward high-performance computing and AI data centers.

Wall Street is staying on the sidelines. Guggenheim’s Jonathan Lee reiterated a Neutral rating, and Rosenblatt’s Chris Brendler kept a Buy but lowered his price target to $11 from $15 following the print.

MARA Holdings has a consensus Buy rating with an average price target of $17.14, according to Benzinga data.

MARA Shares Rebound

MARA Price Action: MARA Holdings shares were up 7.53% at $7.14 at the time of publication on Tuesday, according to Benzinga Pro. MARA has bounced about 33% from last week’s low. The stock hit a high of $7.58 on Tuesday before pulling back.

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