2024-02-17 09:05:39 ET
Summary
- MARA is one of the 3 miners that has financially sustainable mining operations post-halving.
- Being the largest, MARA's upside has been fully priced in based on future capacity and book value to the extent of a $160,000 Bitcoin.
- MARA's impressive 50 EH/s guidance still falls short of Bitcoin's growth rate and is expected to continue losing network share throughout 2024 and 2025.
- Nevertheless, interested investors should bet on MARA's reserves, sustainable operations, and ability to raise capital at good valuations to acquire underperforming competitors and sites cents on the dollar.
Introduction
Recently, we've conducted a comprehensive sector analysis on Bitcoin mining and found that the only miners with financially sustainable post-halving operations are Marathon Digital Holdings ( MARA ), CleanSpark ( CLSK ), and Iris Energy ( IREN ) (Table 1). Our findings were justified as the market rewards these 3 miners disproportionally when compared to the broader sector (Figure 1), and for good reasons. Based on our sector report, we found evidence of an emerging systematic risk of a sector-wide consolidation in the Bitcoin mining sector. This risk highlighted 2 key characteristics required to strive after the coming halving event in April. That 2 characteristics are faster-than-network expansion and mining/business cost efficiency....
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For further details see:
Marathon Digital: Acquisition Is The Name Of The Game