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Is Marathon Digital A Good Stock To Buy For Exposure To Crypto?


  • Marathon Digital offers exposure to crypto, given its status as a leading bitcoin mining operator in the US and its substantial bitcoin holdings.
  • MARA's future revenue will be driven by the company's hash rate, the network hash rate, and the price of bitcoin.
  • I rate MARA's shares as a Hold, as I think that buying cryptocurrencies directly is a better alternative to owning the shares of listed bitcoin miners.
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Elevator Pitch

I have a Hold or Neutral investment rating for Marathon Digital Holdings, Inc.'s (NASDAQ:MARA) shares. MARA offers good exposure to crypto as a proxy stock for the listed bitcoin miner space, and its current valuations seem appealing. But there are

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The Value Pendulum profile picture
Asia Value & Moat Stocks is a research service for value investors searching for attractive Asia-listed investment opportunities  with a huge gap between price and intrinsic value, leaning towards both deep value balance sheet bargains (i.e. buying assets at a discount e.g. net cash stocks, net-nets, low P/B stocks, sum-of-the-parts discounts) and wide moat stocks (i.e. buying earnings power at a discount in great companies like "Magic Formula" stocks, high quality businesses, hidden champions and wide moat compounders).

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Comments (11)

My opinion is MARA is a STRONG BUY IN THE 20 DOLLAR RANGE. This stock will go up over the next few years. 50 dollars will be aver and it could easily hit 100 per share. I own Mara and I own Bitcoin and Ethereum. I WILL BE HOLDING FOR A LONG TIME, like 5 to 10 years minimum.
"It is hard to determine if these long-term revenue growth expectations for MARA are fair. Marathon Digital's own hash rate is dependent on the company increasing the number of miners deployed in the future." Yep. Mara down -10% yesterday alone and down another -7% today already. This after their announcement they were at 3.9 EH/s (adding only .4 EH/s in the entire Q1) and brought online just 1,320 new miners in March = 1/10th of the monthly pace they need to add ~10 EH/s in Q2 and another ~10 EH/s in Q3+Q4. This on top of announcing they are transitioning away from their Montana location, which means shuttering machines (ie a step back they have to make up with even faster deployment elsewhere). B.Riley now projecting them at 16.9 EH/s by year end, which still seems awfully hopeful (could they get to 13.3 EH/s by year end though?), but time will tell - needless to say projecting 18k BTC mined this year and 7% of the global hashrate starting 2023 is a lot different than 9k BTC mined this year and 4% of the global hashrate starting 2023.
This is probably dumb but: what are companies going to do once the Bitcoins are all mined? HODLing Bitcoin should be fine if one is bullish on the future price, but I guess I just don’t get what will actually happen once all the coin is mined.

Also: Bitcoin v. Bitcoin miners. I agree that holding the coin is better, but you can make a lot of premium owning the miners and writing covered calls on them. MARA especially has some lucrative premiums because of it’s extreme volatility. So you can get current income plus some price appreciation doing that based on how deep OTM you sell the calls/puts.
Fiat currency substitutes are in demand
What is this about?
And after quite a bit of waffle, the author simply concludes, "buying cryptocurrencies directly is preferred to investing in listed crypto miners, assuming one has a favorable view of future cryptocurrency prices." without saying WHY!!!!!!!
So why compare their (miners) metrics?
Why write about MARA?
Why not simply compare the price performance of (some) miners to the Bitcoin itself? One simple chart should have been more than enough.
BTW, SDIG has been nothing but disappointing so far.
MARA simply correlates with Bitcoin. BTC high was roughly 69k and MARA was at 84$. When BTC breaks new highs so will MARA break new highs.
Personally, I would not give one ounce of weight to your opinion. Professional analysts have 6 strong buy ratings on the stock. As information to you, it costs Marathon $6K to mine each Bitcoin, which means they are turning a profit when Bitcoin is at any price above that. Not only that, a $50K investment in MARA just 2.5 short years ago, could have turned into over $5M in that same span when MARA hit a high at $80.00. This is the absolute KING of the Bitcoin mining stocks, and I have a hefty investment in the stock personally. As information, it costs Riot Blockchain $12.5K to mine one Bitcoin, so they are highly profitable as well, but not the likes of Marathon Digital.
@Skarski59 Marathon has a big problem over promising and not delivering on estimates. After Q1 they are no where close to their first half projections for 2022.
I can see MARA way higher ahead as Bitcoin keeps getting more adapted and bought up by Big $$
JAMES CARLINI profile picture
I disagree with buying an individual cryptocoin. $MARA is more of an indicator of crypto activities,

How many cryptocoins have gone out-of-business, or were found to be fraudulent scams and schemes only to go out-of-business six months after being introduced? Many ICOs went belly-up six to 12 months after being put onto the market. Better read up on all the scams and frauds that have occurred since the beginning.
Wilson2383 profile picture
I wonder about Voyager VYGVF - chart looks horrible
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