2024-03-08 00:41:30 ET
Summary
- Marathon Digital Holdings is benefiting from the recent increase in bitcoin prices; however, Marathon shares face significant headwinds from BTC halving and the introduction of bitcoin ETFs.
- The company has acquired new data center sites to improve control over utilization and reduce operational costs.
- MARA plans to increase its hash rate and expand its capacity through 2025 to 50exahash/second.
Marathon Digital Holdings ( MARA ) is finding itself in an interesting position with bitcoin having occurred in April, essentially doubling the cost for the same resulting bitcoin mined. This is coming at a time when bitcoin prices are returning to their high watermark last seen in October 2022. Much of this interest may be piggybacking on the newly minted bitcoin ETFs that entered the market in January 2024 shortly after the SEC approved the first bitcoin spot ETF. I believe that this factor will result in MARA no longer being considered as a bitcoin spot proxy, as investors can now own bitcoin spot through these ETFs. I believe the timing will play to Marathon's advantage, in which a higher bitcoin price can alleviate some of the pressure on growth and margins. I provide MARA shares a SELL recommendation with a price target of $16.69/share....
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Marathon Digital Is No Longer A Bitcoin Proxy