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Back in June this year, in my thesis on a blockchain miner, I had predicted that the U.S. would soon become a leader in the crypto-mining space. Well, this has been proved to be true in August according to
Buy Marathon Digital And Get Its Bitcoin Fund For Free But Beware Of Risks
Summary
- Marathon Digital Holdings not only mines cryptos but also holds Bitcoins as part of its growing investment fund.
- The stock is appropriate for ESG-focused investors with its strategy to be carbon neutral by the end of 2022 but beware of short-term stock pull-back due to the energy crunch and supply issues.
- Bearing in mind accusations of fraudulent funding activities implying Bitcoin, I also focus on measures to ensure regulatory compliance.
- Compared with a peer, the miner should continue to improve on profitability metrics due to its particular financing model with rising production.
- The stock can rise further and is an alternative to owning an ETF like BITO which bears a high expense ratio, but also consider the risks.
As a tech-focused industry Research Analyst, I aim to provide differentiated insights, whether it is for investing, trading, or informational reasons. For this purpose, I am not a classical equity researcher from the financial sector, but, I come from the IT world as the Director of Keylogin InfoTech and my insights are based on my own experience investing for 25 years.Also, my research is often backed by analytics and I make frequent use of charts to support my position.Based on losses during the GFC, I am often moderate and focus more on the direction and look for strategies to preserve capital. As per my career history below, I have wide experience, initially as an implementer in virtualization and cloud, and I was subsequently a team leader and project lead, mostly working in telcos.I like to write around themes like automated supply chains, Generative AI, telcos Capex, the deflationary nature of software, semiconductors, etc. and I am often contrarian. I also cover biotechs with more of a "techbio" focus.I have also been an entrepreneur in real estate ( a mediocre one), a business owner, and a farmer, and dedicate at least 5 hours per week to working on a non-profit basis. For this purpose, I help needy families by providing sponsored work and contributing peer reviews and opinions for enterprise tech.My investment journey started in mutual and indexed funds before later opting for individual stocks. Got a lot of experience in the 2008/2009 crash when I lost a lot due mostly to wrong advice. Since then I have done my research and have fallen in love with Seeking Alpha because of the unique perspectives it provides to someone investing hard-earned money as well as access to some of the best analysts.
Analyst’s Disclosure:I/we have a beneficial long position in the shares of SI 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.
This is an investment thesis and is intended for informational purposes. Investors are kindly requested to do additional research before investing. This article has been edited with the help of Bhoshan Woodun.
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