Bitcoin miner and digital infrastructure company MARA Holdings (NASDAQ: $MARA) reported third-quarter net income of $632.1 million on Monday, driven by unrealized gains on its Bitcoin (CRYPTO: $BTC) holdings, even as revenue declined 35%. The company also disclosed that it sold 13,597 Bitcoin after the quarter ended to repay its Bitcoin-backed loans.
The reported profit was largely a mark-to-market gain rather than a reflection of operating performance. MARA recorded an $885.3 million unrealized gain on its digital assets as Bitcoin appreciated 27% during the quarter. Despite the quarterly profit, the company remains at a net loss of $1.24 billion for the first nine months of the year. Revenue declined primarily because the average price of Bitcoin mined by MARA was 37% lower than a year earlier.
According to the company's shareholder letter, third-quarter revenue totaled $164.2 million, down from $252.4 million in the same period last year. Bitcoin mining accounted for $83.1 million of the $88.2 million revenue decline. Lower Bitcoin prices reduced mining revenue by $94.8 million, partially offset by a $11.7 million contribution from higher production.
Net income compared with $12...