What Is Going On With MARA Stock After Its Steep Fall

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Holders are wondering if the business is coming apart after MARA (MARA) stock lost 41.5% from September 28 to October 27, 2026. The S&P 500 gained 0.6% over the same period. Over that stretch, crypto-linked stocks slid as bitcoin fell toward $80,000, and news reports said MARA sold about $81 million of its bitcoin. Part of the answer is already known. MARA mined about 64 more bitcoin in its June 2026 quarter than a year earlier, and it is borrowing against its bitcoin to build a power business. So why is MARA taking in less money while it mines more bitcoin?

MARA's Revenue Fell With Bitcoin's Price

A 28% drop in the average price of bitcoin from a year earlier outweighed MARA's higher output. Revenue for the June 2026 quarter was $175 million, down 26.7% from a year earlier. On its August 6, 2026 earnings call, MARA said that mining more bitcoin added $7.2 million to revenue, while the lower price took away $65.9 million and other revenue fell about $4.9 million.

Profit swings even more. MARA reported a net loss of $610 million for the June 2026 quarter, compared with net income of $808 million a year earlier. About $343 million of the latest loss came from a lower marked value of the digital assets the company holds, a loss on paper rather than in cash, MARA said.

The company also runs at an operating loss. Over the twelve months to June 30, 2026, MARA's operating margin was negative 126.1%, against a positive 18.5% for the S&P 500.

What Is MARA Buying With Bitcoin-Backed Debt?

A power business. During the same call, MARA said it is paying for the $1.5 billion Long Ridge acquisition with bitcoin-backed debt and by taking on Long Ridge's balance sheet. At the time, the deal still needed FERC approval.

That plan may be what buyers are paying for. MARA trades at 3.4 times its sales, close to the 3.2 for the S&P 500, though those sales shrank in the latest quarter. Management expects its power portfolio to reach about 4.8 gigawatts once its pending deals are approved and closed. More than 70% of Long Ridge's power output is sold under long-term contracts, so that income would not move with bitcoin's price. Management also said it was confident of signing at least two leases before the end of 2026 at sites it is developing with Starwood.

The cost is debt. MARA's total debt equals 91.2% of its market value, against 19.4% for the S&P 500. MARA expects to take on about $900 million of Long Ridge's debt when that deal closes. Its latest borrowings are backed by its bitcoin, and with 54% of its holdings pledged as collateral, a fall in bitcoin's price hits both its revenue and the collateral behind its loans.

How Far Has MARA Stock Fallen In Past Shocks?

The stock has fallen further than the S&P 500 in each of the five market shocks since 2022, and much further in most of them. In the 2022 inflation shock, MARA fell 84% while the S&P 500 fell 24%. During the five percent yield shock of summer and fall 2023, MARA fell 55%, against 9.5% for the index. The smallest gap came in the 2023 regional banking crisis, when MARA fell 8.9% and the S&P 500 fell 6.7%.

When Will MARA Holders Learn More?

Holders will learn more in November 2026, when MARA is expected to report its September quarter. For the risk to be worth taking, MARA's power business would need to start bringing in revenue that does not rise and fall with bitcoin's price. The two things to look for in that report are revenue against a year earlier, and whether the Long Ridge acquisition has closed.

What Would Another Fall In MARA Do To Your Plan?

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