MARA Holdings Shares Dip 9.1% After Q3 Earnings Miss Analyst Targets

Bitcoin mining company MARA Holdings Inc. reported a 9.1% drop in after-hours trading following a third-quarter earnings miss, despite a surge in its Bitcoin holdings and mining capacity. Meanwhile, AI-driven EdTech firm Genius Group Limited saw its stock rise 66% after unveiling a new treasury strategy to allocate up to 90% of its reserves to Bitcoin. Both companies are following in the footsteps of industry leader MicroStrategy, which has long championed Bitcoin as a primary asset. 

Bitcoin Mining Firm MARA Holdings Faces After-Hours Slide as Q3 Earnings Miss Analyst Targets

Bitcoin mining giant MARA Holdings Inc. (NASDAQ: MARA), formerly known as Marathon Digital, experienced a sharp 9.1% drop in after-hours trading following a disappointing third-quarter earnings report that missed revenue projections despite a significant year-over-year increase. The company reported a $0.34 per share loss and a substantial quarterly increase in operational expenses, raising concerns about profitability even as it expands its Bitcoin holdings and hash rate capacity.

MARA’s third-quarter earnings reveal a mixed picture for the mining company. Although the firm’s revenue increased by 34.5% compared to the same quarter last year, reaching $131.6 million, it still fell short of Wall Street’s expectation of $148.1 million. This shortfall, coupled with operational expenses climbing by $40 million, contributed to a net loss of $124.8 million for the quarter. MARA’s stock closed the trading day on Nov. 12 at $25.23, up by 0.88%, but subsequently slid to $22.94 after hours, dampening enthusiasm generated by Bitcoin’s recent rally toward $90,000.

Amid the financial turbulence, the company increased its Bitcoin holdings by 45% during the quarter, adding 8,294 BTC and bringing its total to 26,747 BTC—equivalent to approximately $2.36 billion. MARA attributed part of its holdings growth to a new treasury policy implemented this quarter, which stipulates that the company will retain all mined BTC to capitalize on potential price increases over time.

In addition, MARA invested $100 million from its cash reserves to purchase additional Bitcoin, a decision aligned with its strategic focus on expanding its digital asset reserves. This approach allows the company to leverage Bitcoin price fluctuations, even as it grapples with operational costs and profitability challenges in a volatile market environment.

MARA’s energized hash rate—a metric that indicates the computational power dedicated to mining Bitcoin—increased by 17.1% in Q3 to nearly 37 exahashes per second (EH/s). This rise in hash rate allowed the company to mine an additional 147 Bitcoin blocks during the quarter. Higher hash rate capacity is crucial for the company’s ongoing expansion plans, as it translates to a more substantial share of total Bitcoin mined globally, which ultimately impacts revenue generation and BTC reserves.

New Capacity and Infrastructure Investments

Building on its growth momentum, MARA recently secured 372 megawatts (MW) of additional mining capacity at its Ohio facility, with 152 MW already operational. This expansion will play a critical role in MARA’s future productivity, although the company cautioned that revenue generation from infrastructure investments typically has a 12- to 18-month timeline.

“Investing in mining infrastructure typically has a 12- to 18-month timeline to generate revenue,” the company stated. This strategic focus on infrastructure could reinforce MARA’s position as the world’s largest publicly traded Bitcoin miner, with a market capitalization of $7.43 billion.

The performance of Bitcoin mining stocks like MARA often correlates with Bitcoin’s price fluctuations. With Bitcoin nearing $90,000, MARA enjoyed a 30% stock price surge on Nov. 11. However, despite the buoyancy of Bitcoin’s recent rally, MARA’s financial results have tempered market enthusiasm. Analysts and investors will likely be watching closely to see if the company can harness the benefits of its expanded hash rate and BTC holdings to drive higher revenue in the coming quarters.

For MARA and its peers, the volatility of cryptocurrency prices and rising operational costs present both risks and opportunities. MARA’s investments in both infrastructure and digital assets are evidence of its strategy of reinforcing its market position and gaining leverage through Bitcoin’s potential price appreciation. By retaining mined BTC and increasing holdings, MARA aligns itself with investors seeking exposure to Bitcoin while minimizing their direct involvement in the cryptocurrency.

With its latest quarterly report, MARA remains steadfast in its commitment to growth through infrastructure expansion and strategic BTC purchases. Despite a challenging quarter, MARA’s forward-looking investments could yield substantial returns as Bitcoin prices climb and its enhanced hash rate generates higher output over time.

AI Firm Genius Group Embraces Bitcoin-First Treasury Strategy, Shares Surge by 66%

Meanwhile, artificial intelligence company Genius Group Limited (NYSE American: GNS) announced it would adopt a “Bitcoin-first” approach, positioning Bitcoin as its primary treasury reserve asset. The company’s decision, which will involve allocating 90% or more of its existing and future reserves to Bitcoin, sent its stock skyrocketing, closing up 66.4% at $1.05 on Nov. 12 and climbing another 62.86% in after-hours trading to reach $1.71. The Singapore-based firm aims to secure a leading role in the crypto and EdTech sectors by coupling its Bitcoin-first initiative with blockchain-oriented educational programs for students.

Genius Group’s bold financial shift will kick off with a $150 million at-the-market (ATM) offering aimed at raising an initial $120 million for Bitcoin acquisitions. By doing so, Genius Group becomes one of the few companies listed on the NYSE American exchange to make such a substantial Bitcoin investment. The firm’s leadership expressed confidence in Bitcoin’s value as a reserve asset, a stance exemplified by Thomas Power, a Genius Group director.

“The compelling case that we believe Michael Saylor and MicroStrategy have made for public companies to invest in Bitcoin as their primary treasury reserve asset is one that we fully endorse,” Power stated. “We believe with our Bitcoin-first strategy, we will be among the first NYSE American listed companies to fully embrace MicroStrategy’s Bitcoin strategy for the benefit of our shareholders.”

Genius Group’s approach mimics MicroStrategy’s widely publicized Bitcoin strategy, which has seen the tech giant accumulate a staggering 279,420 BTC—currently valued at $24.5 billion with Bitcoin trading at around $88,000. Michael Saylor, MicroStrategy’s co-founder, has become a prominent advocate of Bitcoin as a treasury asset, citing it as a hedge against inflation and a superior store of value compared to traditional currencies. 

Other companies, including Semler Scientific and Metaplanet, have similarly adopted Bitcoin-first strategies in 2024, amassing substantial Bitcoin reserves and aligning their financial structures with the principles of decentralized finance. This trend suggests that Bitcoin’s role in corporate treasury management could expand further, particularly in tech sectors where innovation and digital assets intersect.

Alongside its Bitcoin acquisition plan, Genius Group intends to incorporate Bitcoin payments into its education technology (EdTech) platform, thereby enabling students and clients to pay for educational services with cryptocurrency. Additionally, the company will roll out a series of Web3 and blockchain-focused educational programs, designed to educate students at all levels—from primary school to tertiary education and beyond—on the applications of Bitcoin and other cryptocurrencies.

Genius Group’s educational initiatives are part of its mission to prepare students for the “exponential technologies of the future.” According to Power, “We see Bitcoin as being the primary store of value that will power these exponential technologies.” The company’s educational focus on blockchain and cryptocurrency positions it uniquely among EdTech firms, aligning with its broader mission to lead in emerging technologies and equip students with knowledge of decentralized systems.

The decision to adopt a Bitcoin-first strategy follows a recent restructuring of Genius Group’s board of directors, which saw the addition of several blockchain and Web3 industry experts. This change is indicative of the company’s long-term vision to position itself at the forefront of AI and blockchain integration. Founded in 2002, Genius Group has expanded its AI-powered education technology across multiple sectors, serving students, entrepreneurs, businesses, and governments. Its NYSE American listing in 2022 marked its debut on a major US exchange, setting the stage for its current pivot toward cryptocurrency and blockchain.

The addition of blockchain experts to its leadership suggests that Genius Group may continue exploring other blockchain-related ventures beyond Bitcoin acquisitions, potentially incorporating blockchain technology into its AI-driven EdTech offerings. The new board composition is expected to drive initiatives that capitalize on blockchain’s decentralized features, providing students with an enhanced understanding of the industry’s potential applications.

Investors responded enthusiastically to Genius Group’s announcement, propelling its stock price upwards by over 66% in regular trading hours on Nov. 12, with further gains in after-hours trading. The dramatic rise in share price signals investor optimism about the company’s ability to leverage Bitcoin’s appreciation and meet growing demand for crypto education. Genius Group’s Bitcoin-first strategy aligns it with a rising trend among tech companies, whose shareholders view Bitcoin as a hedge against inflation and a tool for long-term value retention.

However, the move to allocate such a high percentage of reserves to Bitcoin does carry risks, particularly given the cryptocurrency’s price volatility. While Bitcoin has reached historic highs near $90,000, its value can fluctuate significantly, potentially impacting Genius Group’s balance sheet. Nevertheless, the company’s commitment to this approach signifies its belief in Bitcoin’s potential as a primary reserve asset, in line with the confidence demonstrated by Bitcoin advocates like MicroStrategy.

Positioning for Long-Term Growth in a Bitcoin-Centric Future

Genius Group’s adoption of a Bitcoin-first strategy positions it as a trailblazer among publicly traded EdTech companies. By integrating Bitcoin into its treasury and payment systems and offering blockchain education, the firm aims to bridge the gap between traditional education and the digital economy. This move could serve as a model for other companies seeking to engage with Bitcoin beyond speculative investment, especially as cryptocurrency adoption grows and educational institutions begin incorporating blockchain and digital finance topics into their curricula.

As Genius Group continues to build its Bitcoin reserves, investors and analysts will likely watch closely to assess the long-term impact of this strategy on the company’s financial performance. The firm’s alignment with Bitcoin’s principles and its commitment to educating the next generation about decentralized technologies may well establish it as a leader in both the AI and crypto sectors.