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MARA Holdings shares rose about 10% after a $500M buyback, a $750M repayment of bitcoin-backed loans and plans for more bitcoin sales to fund AI projects.
- MARA stock rose roughly 10% to about $7 after the company approved a $500 million share repurchase program.
- The miner sold 13,597 bitcoin for about $1.1 billion and repaid $750 million of bitcoin-backed term loans.
- Management plans further bitcoin sales to fund AI and high-performance computing sites, convertible-note obligations and buybacks.
Lead
MARA Holdings (NASDAQ: MARA), formerly Marathon Digital Holdings, rose about 10% to roughly $7 per share on November 10 after it paired a $500 million buyback authorization with a sharp reduction in bitcoin-backed debt. In its third-quarter filing on November 9, the company said it sold 13,597 bitcoin after the quarter closed at an average price near $81,039, raising more than $1.1 billion. It used $750 million of that to retire its bitcoin-collateralized term loans in full. Bitcoin slipped about 2.6% to near $73,200 over the same 24 hours.What Did MARA Announce?
MARA announced three linked moves: a board-authorized repurchase of up to $500 million of its stock, the full repayment of $750 million in bitcoin-backed loans, and a commitment to keep selling bitcoin to fund its pivot toward AI infrastructure. The loan repayment freed roughly 18,750 bitcoin that had been pledged as collateral. Loaned or pledged coins now make up under 5% of holdings.
The company also said total debt has fallen about $1.4 billion, or 37%, since the start of 2026. Management put the net benefit of the transaction at about $170 million. Convertible notes with put rights exercisable in 2027 remain on the balance sheet, which is one reason the company wants to keep cash available.
Why Did the Shares React This Way?
Shares rose because the deal cut leverage and signaled that the company would return capital at the same time. A bitcoin-backed loan forces a miner to hold or post coins as collateral. That exposes it to margin pressure whenever bitcoin falls, and MARA has now removed most of that risk. A $500 million authorization is also large against a market value that is a fraction of its roughly $3.8 billion of combined cash and bitcoin at September 30.
The third-quarter numbers were mixed. Revenue fell about 35% to $164.2 million from $252.4 million a year earlier, and missed estimates. Net income climbed to $632.1 million, or $1.28 per diluted share, because of an unrealized fair-value gain of about $885.3 million on digital assets. Bitcoin was valued at $83,556 at quarter-end. The company mined 2,247 bitcoin in the quarter, against 2,144 a year earlier.
How Much Bitcoin Does MARA Still Hold?
MARA holds roughly 20,400 bitcoin after the sale, worth about $1.5 billion at current prices. That is derived from the 34,012 bitcoin held at September 30, less the 13,597 sold. The company sold about 26,984 bitcoin for roughly $1.9 billion in the first nine months of 2026, and sales have continued since quarter-end.
The shift is a notable change from the miner's earlier stance as a long-term bitcoin accumulator. In 2025 it began allowing sales of coins produced by mining. In 2026 it extended that to bitcoin held on its balance sheet. Bitcoin is now a funding source for the business and no longer a fixed reserve.
Strategic Context: Mining Meets AI
The sales fund a broader plan to convert power-rich sites into data centers for artificial intelligence and high-performance computing tenants. The same shift has made bitcoin miners a recurring entry on lists of ai stocks, because they own energy contracts and grid connections that AI developers need and that take years to build.
MARA's pipeline includes the pending purchase of the 485-megawatt Long Ridge natural gas power plant. U.S. regulators approved the acquisition on November 4, and closing is expected shortly. Its Exaion unit has signed a four-year, $79 million GPU rental contract. Management is targeting two data center leases with AI or high-performance computing tenants before year-end, while noting that market conditions are fluid.
The approach carries a trade-off. Mining remains profitable at a reported cost of about $39,674 per bitcoin, but revenue is shrinking and the company is moving capital toward a business where it has less operating history. Selling coins at about $81,000, roughly 3% below the quarter-end valuation, also means giving up exposure to any further bitcoin rally.
Outlook
MARA enters the final weeks of 2026 with less debt, less pledged collateral and a repurchase program in place. The next tests are the Long Ridge closing, the signing of the first AI data center leases and the pace of further bitcoin sales. How much of the $500 million is used will show whether management favors buybacks over AI capital spending. Bitcoin near $73,000, well below the level of the recent sales, will shape each of those decisions.
Mentioned tickers: MARA
