Marathon Holdings reported a challenging first quarter for 2026, characterized by a significant net loss despite strategic efforts to reduce debt and pivot toward artificial intelligence (AI).
Digital infrastructure company Marathon Holdings attributed a decline in revenue in the first quarter of 2026 to a decrease in the U.S. dollar value of bitcoin during the period. According to a letter to shareholders released May 11, revenue in the quarter reached $174.6 million, a $39.3 million decline from the $213.9 million recorded in the first quarter of 2025.
The letter revealed that an 18% decrease in the average price of bitcoin accounted for $33.1 million of the decline, while $2.5 million was attributed to a reduction in bitcoin production. The remaining $3.7 million was attributed to a drop in other revenue. The losses occurred despite a 33% increase in the hashrate, which rose from 54.3 EH/s in the first quarter of 2025 to 72.2 EH/s.
Reduced revenue, coupled with a surge in operating costs, led Marathon to register a $1.3 billion net loss during the quarter. During the same period last year, the firm recorded a net loss of $533.4 million, or $1.55 per diluted share, meaning overheads increased by $729 million in the first three months of 2026.
