Marathon Digital sells 13,597 Bitcoin for $1.1B, repays $750M loans

2 min

MARA sold 13,597 BTC after September 30 for approximately $1.1 billion at an average price of about $81,039. It directed $750 million of the proceeds to repay Bitcoin-collateralized loans, releasing 17,477 BTC pledged as security. The company is shifting from holding mined Bitcoin to monetizing reserves to fund AI and infrastructure initiatives.

The balance-sheet rationale and effects

As of September 30, MARA reported 34,012 BTC in total holdings, with a large portion lent or pledged. The post-quarter sales and repayments reduced the proportion of Bitcoin lent or pledged to less than 5% of remaining holdings versus roughly 57% at the earlier reporting date. Management framed the move as enhancing financial flexibility and removing exposure to collateral calls linked to Bitcoin price declines. Borrowing had financed the proposed acquisition of the Long Ridge natural-gas power business. Clearing the borrowing before closing reduced financing risk tied to price volatility. The trade-off: lower direct upside from Bitcoin price appreciation in exchange for reduced liquidity and borrowing risk, contingent on the returns from funded infrastructure.

Capital allocation: mining versus AI and power

Third-quarter revenue declined about 35% year over year to $164.2 million. MARA continues mining but is prioritizing power assets and potential data-center customers alongside hashrate. The Long Ridge asset includes generation capacity and land suitable for a data-center campus. Development plans do not equal signed, revenue-generating leases. Sector peers show similar dynamics: Riot sold more than 20,000 BTC while pursuing AI-related data-center contracts, while Strive increased Bitcoin accumulation, highlighting divergent corporate strategies using the same asset.

Key investor checkpoints

MARA authorized up to $500 million in share repurchases. Reported quarterly profit included significant digital-asset-related accounting effects, which are not recurring mining cash flow. An authorization does not obligate spending. Focus areas: whether the Long Ridge acquisition closes, the status and timing of data-center lease signings, the level of unrestricted Bitcoin remaining, and whether AI-related revenue justifies allocated capital. The Bitcoin sales and debt repayment are completed. Returns from the associated investments remain dependent on execution.

Source: MARA Q3 shareholder letter.