Marathon Digital: Priced For Big BTC Gains Already (Rating Downgrade)

Mike Fay
5.73K Followers

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.
making money with bitcoin - Bitcoins coming from business man"s hand

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When I last covered Marathon Digital (NASDAQ: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

This article was written by

5.73K Followers
Former media research analyst. Main coverage areas are crypto, BTC miners, metal, and media equities. I'm not an investment advisor. I just share what I do with my own capital and why. Outside of Seeking Alpha, I also write the Heretic Speculator newsletter over at Substack.

Analyst’s Disclosure:I/we have a beneficial long position in the shares of BTC-USD, 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.

I'm not an investment advisor.

Seeking Alpha's Disclosure: Past performance is no guarantee of future results. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. Any views or opinions expressed above may not reflect those of Seeking Alpha as a whole. Seeking Alpha is not a licensed securities dealer, broker or US investment adviser or investment bank. Our analysts are third party authors that include both professional investors and individual investors who may not be licensed or certified by any institute or regulatory body.

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