2024-04-06 01:41:55 ET
Summary
- Bitcoin transaction fees have failed to live up to expectations, potentially impacting miners' profitability and network utility long term.
- Marathon Digital recorded a net income of over $200 billion in Q4-23 due to changes in accounting rules, but I calculate Q4 breakeven BTC price at $43.7k.
- Balance sheet management has been impressive with strong liquidity and a large reduction in debt.
- From a P/S valuation standpoint, MARA is already pricing in a six figure BTC price.
When I last covered Marathon Digital ( MARA ) for Seeking Alpha in December, the Bitcoin ( BTC-USD ) network was experiencing a dramatic surge in transaction fees as a percentage of total block reward. The potential long term stickiness of transaction fees would be hugely beneficial to BTC miners like Marathon because it would minimize the impact of emission halvings - the next of which is roughly two weeks away as of article submission....
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For further details see:
Marathon Digital: Priced For Big BTC Gains Already (Rating Downgrade)