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Marathon Digital's Mining Investments Could Finally Be Bearing Fruit For Investors

IncomeBent Investments profile picture
IncomeBent Investments


  • Marathon's recent production updates give us clearer insights into what revenue could look like over the next 12 months.
  • The company estimates that monthly Bitcoin production could reach as high as 2900 by mid-2022.
  • The restoration of Bitcoin's overall network hashrate could provide headwinds for Marathon's mining operation.
Bitcoin hodl concept. Toned soft focus picture. Conceptual image for worldwide cryptocurrency and digital payment system

Velishchuk/iStock via Getty Images

Marathon Digital (NASDAQ:MARA) is a company in the Bitcoin mining space. It has been carving out its place as a sector leader in the space by investing heavily in its mining fleet and by extension, ensuring its hashrate growth surpasses that

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IncomeBent Investments profile picture
I provide easy-to-digest insights on stocks and bonds. I am obsessed with growth stocks and cyclical plays, but I also provide analysis on Value opportunities where appropriate. I employ industry and fundamental analysis to give a clear picture of the opportunity over a reasonable timeframe. - MBA and over a decade as an investor and investment author. - My content is not geared to anyone's specific investment goals, time horizons, or risk tolerance. Content is for illustrative purposes only and is not intended to displace advice from a fee-based financial adviser. It is not to be taken as investment advice, or influence investor decision making. Accuracy of data is not guaranteed.

Analyst’s Disclosure: I/we have a beneficial long position in the shares of MARA either through stock ownership, options, or other derivatives. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.

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Comments (9)

Good article. What do you think of Core Scientific and the SPAC taking it public compared to MARA?
Lol ...funny comments about things like coal below. Like anyone that's not a libtard cares. The goal is to make money with these miners ...period. Same as Boeing, Ford, the military suppliers ...etc.
@mutsavj >>The goal is to make money with these miners<<

How, by mining or just buying Bitcoin? If you are going to mine, THEN mine...so what is going on with their Hardin facility? ANYONE?
@Tatech Yeah ...mine the heck out of Bitcoin ...secure as many as you can. Watch your balance sheet quadruple in 10 years or less.
So, have they taken any coal deliveries at their Hardin plant yet? Hmmm...anyone?
MARA is trying to become a "best in breed" miner, so it's P/S will be higher in the short/mid-term timeframe (FAANG stocks). This "can be" a win win situation. Win, if they can increase their bitcoin production/hoarding. Win if Bitcoin keeps rising to +$100,000,000. The stock price should increase almost exponentially into the Santa Claus season ....we'll see. Happy investing.
I like to look at the reward/risk ratio. Currently this will be one of the best opportunities to get into MARA if you have not already done so.

Risks are that a black swan event drives Bitcoin down temporarily or possibly causes a cycle top. China and regulatory FUD seems to be baked in already.

There are way too many drivers this quarter that should drive the Bitcoin price up to a triple digit top of $110K (expert opinions only, not a given). A BTC ETF approval, the government debt limit, the infrastructure bill, corporate adoption, inflation, increases in scarcity, and retail FOMO.

With the BTC price going up and the MARA strategy of investing in production equipment that produces a BTC return versus investing in infrastructure like other miners are doing is genius. It provides max flexibility as their costs can be scaled to match the Bitcoin price. Basically they can buy more miners when needed or cut back if necessary when the cycle appears to be topping for the cycle.

Their flexibility strategy reduces risk. Thus the reward to the upside greatly outweighs the risk. Of course pay attention to macro events and keep your eyes open for anything unexpected that can be impactful.
one of best play in Bitcoin
Jake Goldi profile picture
Long MARA hodler. They are a great company and stock to own. Lets go Marathon!
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