MARA Signals More Bitcoin Sales as Long Ridge Deal Looms; Confirms 15% Layoffs in AI Pivot
MARA signaled it may continue selling bitcoin to help finance its planned $1.5 billion acquisition of Long Ridge Energy & Power after liquidating 38% of its BTC reserves in Q1 to repurchase debt and reshape its balance sheet.
The company disclosed in its first-quarter 2026 filing that it sold approximately 20,880 BTC during the quarter, generating about $1.5 billion in proceeds. Executives said the company may continue monetizing bitcoin holdings depending on market conditions and capital allocation priorities tied to the Long Ridge transaction, which was announced in April as part of MARA’s broader expansion into AI and high-performance computing infrastructure.
“We expect to fund the remaining consideration through a combination of cash on hand, borrowings collateralized by Bitcoin, and potentially proceeds from the sale of Bitcoin,” management said on the earnings call.
The latest filing indicates MARA sold substantially more bitcoin than it had previously disclosed. The company had earlier revealed that it sold 15,133 BTC between March 4 and March 25 for roughly $1.1 billion to fund the repurchase of more than $1 billion face value of its 2030 and 2031 convertible notes at a discount, while retaining excess proceeds for general corporate purposes.
The updated quarterly figures imply MARA sold roughly another 5,700 BTC either earlier in the quarter or during the final days of March.
In total, MARA used the quarter’s bitcoin monetization to repurchase over $1 billion in convertible debt, reduce its line of credit by $200 million and refinance another $150 million facility at a reduced 7% interest rate, down from 10.5%.
The aggressive treasury repositioning marked a notable shift for a company long known for its “hodl” approach to bitcoin accumulation. The company still held 35,303 BTC as of March 31, valued at roughly $2.4 billion at quarter-end prices, though holdings declined by 12,228 BTC from a year earlier.
MARA has also increasingly used its bitcoin reserves as a financing instrument. About 28% of its holdings were either loaned out or pledged as collateral at quarter-end, generating approximately $66.4 million in interest income during 2026, management said.
Executives provided additional detail on the financing plan for the Long Ridge acquisition, saying the target company’s $400 million term loan is expected to be repaid at closing, while MARA is seeking consent to keep Long Ridge’s $600 million secured notes outstanding. The company also secured a $785 million commitment letter backed by a bridge facility from Barclays.
The Long Ridge deal is central to MARA’s ongoing pivot beyond traditional bitcoin mining and into power generation, AI infrastructure and HPC-related businesses.
That transition has already resulted in cost-cutting measures internally. MARA disclosed that restructuring tied to its AI and HPC strategy led to a workforce reduction of about 15% during the quarter, confirming Blockspace Media’s report earlier this year.
MARA mined 2,247 BTC during the first quarter, down about 2% from a year earlier as rising network difficulty and global hash rate growth pressured mining output.
