Earnings season is coming to an end, with mixed results from cryptocurrency miners, artificial intelligence infrastructure companies and fintech companies, including MARA Holdings (MARA), TerraWulf (WULF), CoreWeave (CRWV) and Block (XYZ).
Bitcoin Bitcoin prices were relatively flat around $67,000 during the Asian and European hours, with limited moves affecting other cryptocurrency-related stocks.
MARA Holdings rose 16% to $9.80 after it struck a deal with Starwood Capital to convert selected bitcoin mining facilities into artificial intelligence-focused data centers. The partners expect to deliver approximately 1 GW of installed capacity in the short term, with plans to expand to more than 2.5 GW.
The shift reflects a broader shift, following companies like Bitfarms (BITF) and Cipher Digital (CIFR), as miners look to monetize their power access as artificial intelligence computing demands surge.
TerraWulf shares fell 3.5% to $17 following the fourth-quarter release, which reported lower revenue due to lower Bitcoin production and transitional GAAP optics.
Executives stressed, however, that the key is growth in high-performance computing contract revenue. According to Matthew Sigel, head of digital assets VanEck, the company has expanded from one site a year ago to five sites today, with a total expected capacity of about 2.9 gigawatts by the end of the year.
CoreWeave shares fell 12% despite revenue of $1.57 billion, beating estimates of $1.53 billion. The company reported weaker-than-expected first-quarter revenue guidance and higher capital spending, raising concerns about profitability and cash burn. Earnings per share were -$0.89, compared with expectations of -$0.68, and 31% below expectations.
Block announced it would cut more than 40% of its workforce, reducing its workforce to about 6,000, and its stock price rose 20%. While management points to AI-driven efficiencies, investors are also weighing long-term profit pressure from stablecoin-based payment channels.
According to Sigel, the company expects first-quarter operating income of US$600 million, compared with US$574 million expected, and expects first-quarter gross profit of US$2.8B, compared with market expectations of US$2.72B, and has raised its full-year gross profit.
