2024-02-11 23:56:01 ET
Summary
- Marathon Digital has transformed into an industry behemoth over the last few years, with over $1 billion in net assets and a massively expanded mining footprint.
- A high level of bitcoin exposure and consistent dilution make the stock a risky proposition at current prices.
- Selling put options on MARA stock appears optimal.
- Yielding a cash-on-cash return of 13.4% over the next 225 days, a trade like this could generate meaningful returns while baking in a huge margin of safety if assigned.
A number of years ago, we published an article , which focused on Marathon Digital ( MARA ), and how we thought that selling put options on the stock was an attractive way to earn yield for those looking to maximize risk & reward in the crypto space.
We touched on the company's plans to expand mining capacity, along with unit economics, growth plans, and the company's balance sheet to inform our trade idea, which involved selling put options at a 54% discount to where the stock was trading at the time....
Read the full article on Seeking Alpha
For further details see:
Marathon Digital: Earn A 21% Annualized Yield Betting On This Leading Bitcoin Miner