Bitcoin Miners' Stocks Sink: MARA and CleanSpark Hit by $1.7 Billion Losses
MARA and CleanSpark shares tumble as their quarterly losses skyrocket to a combined $1.7 billion. Bitcoin's price drop takes a toll.
JUST IN: Bitcoin miners MARA Holdings and CleanSpark, Inc. are taking a brutal hit. Their latest quarterly results are in, and it's not pretty. Both companies saw a drop in revenue and massive net losses. MARA's net loss ballooned to $1.3 billion, driven in part by a harsh $1 billion loss linked to its digital asset holdings. Those numbers are staggering. Meanwhile, CleanSpark wasn't spared either. Their net loss shot up to $378.3 million. No surprise their shares fell hard in after-hours trading.
MARA's journey through the quarter was a wild ride. The company closed its stock at $13.39 on May 11, a neat 3.48% uptick before a 3.44% plunge after-hours. CleanSpark's shares didn't have much luck either, closing up 0.7% only to dive 9.09% later. It's no wonder with quarterly revenues slipping 18% for MARA to $174.6 million and 24.9% down for CleanSpark to $136.4 million. Bitcoin's price slide hammered their treasuries, with MARA's Bitcoin holdings ending at 35,303 BTC worth about $2.4 billion. They sold 20,880 BTC at $70,137 on average but couldn't dodge the losses.
Both companies are caught in a broader pattern of misery among Bitcoin miners. Major players like Hut 8, Core Scientific, and Riot Platforms have also reported losses recently. The crypto mining sector's facing a massive squeeze. As Bitcoin's price takes hits, miner treasuries suffer. Here's the thing, traders are watching closely. The market's verdict? Bitcoin miners are in for a rocky ride. And just like that, they're reminded of just how volatile this game can be.