Release Date: February 26, 2025

For the complete transcript of the earnings call, please refer to the full earnings call transcript.

Positive Points

• MARA Holdings Inc (NASDAQ:MARA) reported record high revenues and net income for Q4 and the full year 2024.
• The company successfully transitioned into a vertically integrated energy and technology solutions provider, securing 300% more energy capacity.
• MARA Holdings Inc (NASDAQ:MARA) reduced its energy costs significantly by deploying its first owned power-generating assets.
• The company is exploring opportunities in artificial intelligence, planning to deploy 30 megawatts of inference AI compute.
• Revenue increased by 37% in Q4 2024 compared to Q4 2023, and full-year revenue grew by 69%.

Negative Points

• The company faces challenges with the increasing competition in the crypto mining sector and potential regulatory changes.
• There is a risk of over-reliance on Bitcoin price appreciation for future growth and profitability.
• MARA Holdings Inc (NASDAQ:MARA) is exposed to geopolitical risks, particularly concerning energy asset ownership and international expansion.
• The company acknowledges the need for significant capital investment to maintain and grow its mining operations.
• There are concerns about the scalability and speed of expanding energy asset ownership compared to other models.

Q & A Highlights

• Warning! GuruFocus has detected 7 Warning Signs with MARA.

Q: Are you interested in a co-location model for AI infrastructure, or are you focused on load balancing at those locations? A: Fred Thiel, CEO: We believe space will become a commodity as AI infrastructure grows. Our focus is on small inference AI sites near customers for low latency and control, rather than large-scale sites. We aim to provide complete solutions for inference AI at the edge.

Q: Should we expect MARA to acquire as much power in 2025 as in 2024, and what regions are you targeting? A: Fred Thiel, CEO: We aim for 50% of our capacity from international markets by 2028. In the US, we focus on acquiring energy assets to lower costs. Internationally, we partner with energy companies for large-scale opportunities, as seen in our UAE project.

Q: How does owning energy assets compare to being a vendor in terms of scalability? A: Fred Thiel, CEO: Owning energy assets like wind farms allows us to optimize every electron and extend the life of mining equipment. This strategy reduces maintenance costs and capital expenditure, making us more capital efficient.

Q: What specific Bitcoin projects or use cases are you tracking, and what part of the cycle do you think we're in? A: Fred Thiel, CEO: Bitcoin is correlated with equities and affected by economic signals. Exciting developments include side chains and tokenizing real-world assets. We believe we're in the early stages of institutional adoption.

Q: Why did you choose to issue converts to buy Bitcoin rather than investing in energy assets or infrastructure? A: Fred Thiel, CEO: We believe in leveraging converts for appreciating assets like Bitcoin. This strategy allows us to capitalize on potential price appreciation and generate yield, rather than waiting for returns from infrastructure investments.

For the complete transcript of the earnings call, please refer to the full earnings call transcript.