koto_feja
MARA Holdings, Inc. (NASDAQ:MARA) is a well-known bet on Bitcoin. The bulk of its assets are in the form of Bitcoin, while the rest of the company's value is in its Bitcoin mining operations. The bearish argument on MARA is a macroeconomic
MARA Holdings: Buy As The NAV Of Its Bitcoin Holdings And Market Cap Converge
Summary
- MARA Holdings is a leveraged bet on Bitcoin, with its assets primarily in Bitcoin and Bitcoin mining operations, making it highly correlated with Bitcoin prices.
- Despite Bitcoin's 13% rise over the past year, MARA has declined by nearly 40%. The NAV of MARA's Bitcoin holdings has converged with its market cap.
- MARA's mining operations are running at a loss, with total costs per Bitcoin significantly higher than current Bitcoin prices.
- Despite mining operations running at a loss, the value of these operations has nearly completely eroded. An overreaction in my opinion.
- Recent plans to sell $2 billion worth of shares aim to buy more Bitcoin and invest in mining, increasing MARA's exposure to Bitcoin, but also shoring up its balance sheet.
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