In a significant market shift, Bitcoin has experienced a steep decline, dropping from a peak of $124,774 per coin on October 7, 2025, to $86,413 as of December 16, marking a 31% decrease. Concurrently, MARA Holdings, a veteran in Bitcoin mining, has seen its stock plunge 53% since mid-October, leading investors to question whether now is the right time to switch from Bitcoin to MARA.
Investors looking at MARA Holdings today will find a current price of $9.93, a market capitalization of $3.8 billion, and a day’s trading range of $9.92 to $10.95. Over the last year, the stock has fluctuated between $9.71 and $23.45, indicating considerable volatility. Despite the downturn, MARA’s management remains hopeful as they pivot towards new business strategies.
Historically, MARA has been closely tied to Bitcoin’s performance. Initially known as Marathon Patent Group, the company transformed into a cryptocurrency-focused operation and bought significant Bitcoin and mining equipment in early 2021. The stock was typically more volatile than Bitcoin, amplifying the highs and lows of the leading cryptocurrency.
Recent developments have altered this dynamic. In early 2024, the SEC approved the first spot Bitcoin exchange-traded funds (ETFs), leading to increased investment in the cryptocurrency sector. However, a key event—Bitcoin’s fourth halving—reduced miners’ rewards from 6.25 Bitcoin to 3.125 Bitcoin per block. This halving action disrupted the economic model for mining, making it less profitable as costs for energy and equipment remained high while competition intensified.
Marathon’s daily Bitcoin production fell from an average of 28.8 Bitcoin per day in March 2024 to 24.5 Bitcoin per day by mid-2025. Despite a 37% rise in quarterly mining revenue due to higher Bitcoin prices, the cost of production surged by 82%, squeezing profit margins further.
In response to these challenges, MARA’s management has articulated a new vision for the company, expanding its business model beyond pure Bitcoin mining to include energy sales and data center operations. This pivot is partially inspired by the rise of artificial intelligence (AI), which shares infrastructure needs with cryptocurrency mining. The company, now rebranded as MARA Holdings, is aiming to capitalize on these new opportunities as it prepares to install AI-computing hardware in its facilities.
MARA’s current strategy allows for a dual focus: it continues to mine Bitcoin while exploring the burgeoning AI market. However, the shift comes with challenges, as the competition among former Bitcoin miners entering the AI space is steep. Without solid contracts or established operations in AI, MARA still primarily identifies as a Bitcoin mining company.
While some investors may find the current low prices of MARA attractive, the transition to a more diversified business model carries inherent risks. Those still heavily invested in Bitcoin, as reflected in the ongoing popularity of Bitcoin ETFs, remain cautious. The overarching sentiment is one of hesitance; many are prioritizing their Bitcoin holdings over increasing exposure to MARA, given that mining costs are outpacing rewards.
In summary, while MARA Holdings potentially represents a buying opportunity during this significant price correction, the company’s long-term sustainability remains to be seen. Investors are advised to weigh the risks of transitioning from Bitcoin to a company still deeply entrenched in its ecosystem.
