Earnings season wraps up with mixed results across crypto miners, AI infrastructure plays, and fintech names. MARA Holdings (MARA) surged 16% to $9.80, Block (XYZ) jumped 20%, while CoreWeave (CRWV) sank 12% and TerraWulf (WULF) slipped 3.5%. Bitcoin traded flat around $67,000, offering no sector-wide lift.
MARA Partners with Starwood to Convert Mining Sites into AI Data Centers
MARA Holdings struck a deal with Starwood Capital to repurpose select bitcoin mining facilities for AI-focused data centers. The partners expect to deliver about 1 gigawatt of capacity near-term, with plans to scale beyond 2.5 gigawatts. The pivot mirrors a broader shift among miners monetizing power access amid rising AI compute demand, following moves by Bitfarms (BITF) and Cipher Digital (CIFR). MARA shares jumped 16% to $9.80 on the news.
TerraWulf: HPC Revenue Ramps Up, but Q4 Print Disappoints
TerraWulf reported lower Q4 revenue due to reduced bitcoin production and transitional GAAP adjustments. The stock fell 3.5% to $17. However, executives stressed the key story is the ramp in contracted high-performance computing (HPC) revenue. According to VanEck's head of digital assets Matthew Sigel, TerraWulf expanded from one site a year ago to five today and expects roughly 2.9 gigawatts of gross capacity by year-end. The revenue dip is seen as a transition phase, but investors await HPC revenue materialization.
CoreWeave: Revenue Beat but Weak Guidance Triggers 12% Drop
CoreWeave posted Q4 revenue of $1.57 billion, surpassing the $1.53 billion consensus, but issued weaker-than-expected Q1 revenue guidance alongside rising capital expenditure, sparking concerns over profitability and cash burn. Earnings per share came in at -$0.89, missing the -$0.68 estimate by 31%. Shares dropped 12% as the market sold off on the profitability outlook.
Block: Workforce Cut of Over 40% Lifts Stock; Stablecoin Payment Rails Raise Margin Questions
Block announced plans to reduce headcount by over 40%, trimming to approximately 6,000 employees, citing AI-driven efficiency. The stock jumped 20% on the news. At the same time, analysts flagged that stablecoin-based payment rails could pressure long-term margins. Block guided Q1 operating income to $600 million (versus $574M expected) and Q1 gross profit to $2.8 billion (versus $2.72B consensus), and raised full-year gross profit guidance, per Sigel. The combination of cost-cutting and solid guidance drove the share price rally.