MARA Holdings shares declined 5.7% in pre-market trading to $11.30 following a double downgrade from JPMorgan. The investment bank moved its rating on the Bitcoin mining company from Neutral to Underweight and reduced its price target to $11 from $13, with the target horizon extended to December 2027.
JPMorgan’s assessment focused on MARA’s capital-light strategy through its joint venture with Starwood Digital Ventures. Under the arrangement, MARA provides powered land sites while Starwood handles design, development, tenant sourcing and operations. The bank noted that MARA receives half the value created by the venture, which factored into its evaluation of the company’s risk-reward profile.
The downgrade came after MARA reported second-quarter results that missed market expectations. The company’s revenue reached approximately $174.9 million, falling short of Wall Street projections near $209 million. MARA posted a loss of $1.60 per share compared with earnings of $1.84 per share in the year-ago period. A fair-value loss on digital assets contributed to the quarterly performance.
The stock’s 52-week trading range extends from a high of $23.45 to a low of $6.66, with the pre-market price near the new price target. The broader market also faced headwinds, with the Nasdaq Composite down 1.7% and the S&P 500 falling 0.8% during the session. Other Bitcoin mining operators, including Riot Platforms, CleanSpark and Hut 8, face similar exposure to cryptocurrency prices, mining economics and capital costs.
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