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.

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Net income compared with $123.1 million, or $0.27 per diluted share, a year earlier, while adjusted EBITDA increased to $857.7 million from $395.6 million. MARA mined 2,247 Bitcoin during the quarter, up 5% year over year, as its energized hashrate increased 18% to 71.2 exahashes per second. The company sold 3,891 Bitcoin at an average price of $75,300 during the quarter and did not purchase any.

Following the quarter's end, MARA sold 13,597 Bitcoin at an average price of approximately $81,039, generating roughly $1.1 billion in proceeds. Of that amount, $750 million was used to fully repay Bitcoin-collateralized term loans taken out during the quarter to finance its acquisition of the Long Ridge power plant. The repayment also released 17,477 Bitcoin that had been pledged as collateral.

MARA estimated that its strategy of borrowing against Bitcoin and subsequently selling the assets generated a net financial benefit of approximately $170 million. The company held 34,012 Bitcoin as of Sept. 30, valued at roughly $2.8 billion. Following the sale, its remaining holdings stood at approximately 20,415 Bitcoin, before accounting for additional coins mined since the transaction.

Total debt has declined by $1.4 billion, or 37%, this year, while cash and cash equivalents stood at $946.5 million. MARA said it expects to continue selling Bitcoin to fund its artificial intelligence infrastructure expansion, meet potential put obligations on its convertible notes beginning next year and potentially repurchase shares. Its board also authorized a share repurchase program of up to $500 million following the quarter's end.

CEO Fred Thiel said the opportunity "is bigger than monetizing the megawatt," describing the company's strategy as an evolution from power generation to infrastructure, computing and eventually integrated cloud services.

MARA emphasized that it is not abandoning Bitcoin mining, which remains the foundation of its operations. The company is targeting approximately 1.9 gigawatts of capacity, with a longer-term path toward 4.8 gigawatts. It also aims to secure two data center leases before the end of the year, although management cautioned that the agreements could be delayed until 2027.

MARA's acquisition of the Long Ridge power plant received approval from the Federal Energy Regulatory Commission (FERC) and is expected to close by year-end. The natural gas facility is authorized to sell 485 megawatts of electricity, with capacity expected to increase to 505 megawatts in the first half of 2027. Approximately 70% of its output is covered by long-term contracts.

The company also secured rights to a site in Matagorda County, Texas, with access to as much as 2 gigawatts of potential power capacity, subject to regulatory approvals.

Meanwhile, MARA's majority-owned subsidiary Exaion signed a four-year, $79 million GPU-as-a-service agreement structured on take-or-pay terms. MARA said Exaion's sales pipeline represents more than $3 billion in potential total contract value, although none of that pipeline has been converted into signed contracts.

Shares of MARA Holdings (NASDAQ: MARA) are trading at $6.64, down from a 52 week high of $16.62.