RIOT - Marathon Digital: Scaling And Reducing Costs As Mining Difficulty Rises And Halving Looms
2024-02-19 05:31:17 ET
Summary
- With the Bitcoin halving event which will cut miners' rewards in half looming in April, it is important to assess whether Marathon is in a position of strength.
- At the same time, the industry is consolidating because of the competition while some are diversifying into other industry verticals.
- Marathon's strategy to scale while reducing operating costs is positive, while the value of the Bitcoins it is HODLing seems not to have been fully priced in its Price-to-Sales multiple.
- After addressing this discrepancy, this is a buy.
- However, higher BTC prices increase mining difficulty which can in turn lead to volatility risks.
Trading at $29.4 at the time of writing Marathon ( MARA ) is far below its 2021 peak of $75. Now, historical developments like the regulatory approval of the first Bitcoin ( BTC-USD ) spot ETF last month and the halving event to take place around April 19 are determining the miner's performance, especially given it holds a large number of coins in its treasury compared to peers....
Marathon Digital: Scaling And Reducing Costs As Mining Difficulty Rises And Halving Looms