Marathon loses 1.3 billion dollars in Q1 2026 due to Bitcoin drop

Bitcoin drops again, and crypto miners immediately sense the slope becoming steep. When BTC slips, mining farms no longer hear just a market noise, but an accounting avalanche. Marathon now advances on a tightrope, crampons dug into its costs, with less financial oxygen. Each bitcoin drop turns its industrial model into a cold, expensive, and dangerously vertical climb.

Bitcoin Drops, Marathon Takes the Avalanche Head-On

Marathon Holdings reports a net loss of 1.3 billion dollars in Q1 2026. One year earlier, the deficit was already 533.4 million, but the gap has widely opened. Revenue falls to 174.6 million dollars, compared to 213.9 million in Q1 2025.

According to the company, the average 18% drop in bitcoin price explains 33.1 million in lost revenue. Lower production removes another 2.5 million, while other revenues drop by 3.7 million.

Yet, Marathon has not cut the engines. Its hashrate climbs from 54.3 EH/s to 72.2 EH/s, a 33% increase in power. The paradox stings like a white wind at altitude: more machines, more expense, but less margin. 

In this post-halving crypto industry, producing more is no longer enough. Bitcoin still dictates the weather, and Marathon absorbs every gust directly in the balance sheet.

Crypto Mining Enters the Steep Post-Halving Corridor

Crypto mining now resembles an expedition where each meter costs more than anticipated. Marathon suffers a worsening of 729 million dollars in its net loss year-on-year. The core of the shock comes from a 520.4 million increase in operating loss, fueled by unfavorable bitcoin-related adjustments. 

These adjustments reach about 1 billion dollars, to which 45.9 million in restructuring costs are added.

The sector’s setting does not help. Since the April 2024 halving, the block reward dropped from 6.25 to 3.125 BTC. Crypto miners therefore have to climb with a heavier bag on a smoother wall. 

The MARA stock illustrates this fatigue: it remains well below its annual peak of 23.45 dollars. Analysts still keep an average target around 17.62 dollars, with a majority positive opinion. 

The market thus does not bury Marathon, but demands clear proof: reduce costs, stabilize margins and survive the energy winter.

Marathon Sells Its Treasure to Prepare for Post-Bitcoin Mining

Marathon sold around 1.5 billion dollars of bitcoin during the quarter. These funds were used to buy back, at a discount, over 1 billion of convertible bonds 2030 and 2031. The company also reduced its credit line by 200 million, then refinanced 150 million at 7%, compared to 10.5% before.

This maneuver resembles a surgical operation in a mountain refuge: tough, precise, essential.

The pivot goes beyond mere debt. Marathon prepares its shift towards AI and high-performance computing. Its Long Ridge Energy & Power project, valued at 1.5 billion, could support more than 600 MW of AI load. About 90% of its non-hosted mining capacity could also serve these new uses. 

Yet, Marathon still holds 35,303 bitcoins, some of which are loaned or pledged as collateral.

Numbers that Hit the Wall

• Marathon net loss: 1.3 billion dollars in Q1 2026;
• Operational hashrate: 72.2 EH/s, up 33%;
• Bitcoin sold: about 1.5 billion dollars during the quarter;
• Remaining reserves: 35,303 BTC still held by Marathon;
• BTC price: 81,159 dollars at the time of writing.

The marriage of AI and bitcoin mining can save infrastructures, but also crush laggards. This new force already redistributes energy, margins, and sector priorities. In this crypto rope team, electricity sometimes becomes more strategic than the machines themselves.