If you expectBitcoin(BTC-USD) to move higher, there are a number of ways to participate in the rally. You can buy Bitcoin, a Bitcoin exchange traded fund or take your chances with Marathon Digital (NASDAQ:MARA) stock, which earns a “B” grade for offering prime Bitcoin-miner exposure along with a high dose of volatility.
Marathon Digital is one of the most active and ambitious Bitcoin miners in the U.S. Bernstein analysts reportedly envision Bitcoin going to $90,000, and if that happens, Marathon Digital stock would probably zoom higher. Just maks sure you’re be ready for a roller-coaster ride along the way with plenty of thrills and chills.
One Factor That De-Risks MARA Stock
Recently, Bloomberg reported that the daily revenue for Bitcoin miners reached all-time highs. Make no mistake about it: miners like Marathon Digital can make a lot of money when the Bitcoin price rises.
When there’s a “cryptocurrency winter” and the Bitcoin price sinks, miners tend to go out of favor on Wall Street. This helps to explain why MARA stock has been as high as $30 but also as low as $3 and change during the past two years.
However, one factor that de-risks Marathon Digital stock somewhat is the fact that the company is profitable. Impressively, Marathon Digital earned 74 cents per share in 2023’s fourth quarter, easily beating the analysts’ consensus estimate of 4 cents per share.
Marathon Digital’s Massive Mining-Infrastructure Investment
Clearly, Marathon Digital isn’t a fly-by-night venture with no profits. The company is an established cryptocurrency producer with powerful Bitcoin-mining equipment.
Moreover, Marathon Digital is acquiring more Bitcoin-mining infrastructure. In two news releases, the comany said it agreed to purchase a Texas-based Bitcoin mining data center from Applied Digital (NASDAQ:APLD).
There’s risk involved here, since Marathon Digital expects to pay $87.3 million for the data center. Prospective investors should take this into consideration before buying MARA stock.
However, this data center should provide Marathon Digital with a “name plate capacity of 200 megawatts.” Besides, Marathon Digital isn’t a cash-strapped company that can’t afford to purchase mining equipment.
At the end of last year, Marathon Digital had $357.3 million worth of unrestricted cash and cash equivalents on its balance sheet.
On top of that, the company had unrestricted holdings of 15,126 Bitcoin. So, evidently Marathon Digital can afford to acquire the data center from Applied Digital.
Crypto Enthusiasts Should Consider MARA Stock
We won’t declare that Marathon Digital stock is right for every investor. Before hitting the “buy” button, you’ll want to assess your tolerance for risk and magnified share-price moves. Also, this stock probably isn’t appropriate for you unless you’re bullish on Bitcoin.
It’s encouraging to know that Marathon Digital is income-positive and is fairly well capitalized. With all of that in mind, we’re assigning a “B” grade to MARA stock as potential portfolio holding for Bitcoin aficionados.
On the date of publication, neither LouisNavellier nor the InvestorPlace Research Staff member primarily responsible for this article held (either directly or indirectly) any positions in the securities mentioned in this article.
FAQs
MARA Stock: The Bitcoin Miner That Could Soar if BTC Hits $90K. Marathon Digital (MARA) agreed to buy a Bitcoin mining center for $87.3 million. That's a risky bet, but Marathon Digital has a sizable cash balance. Investors should consider buying MARA stock if they have a bullish thesis on Bitcoin.
How much Bitcoin does 1 Bitcoin miner make? ›
If you're successful in mining a Bitcoin block, you'll receive 6.25 BTC – currently valued at over $162,500. You'll also receive the transaction fees paid by senders for the respective block. What's more, Bitcoin mining is also possible without purchasing any equipment.
What is the future of Marathon Digital Holdings? ›
Given the amount of capacity we have available following our recent acquisitions and the amount of hash rate we have access to through current machine orders and options, we now believe it is possible for us to double the scale of Marathon's mining operations in 2024 and achieve 50 exahash by the end of the year.
How much hashrate does Mara have? ›
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16 more rowsA new block is mined every 10 minutes, and the network releases a fixed amount of Bitcoin and distributes it to miners. This release of Bitcoin is called a block reward. Before the Bitcoin halving in April 2024, the block reward was 6.25 per block.
What is the most profitable Bitcoin miner? ›
Bitcoin miners are faring significantly better than they did in 2022, with current data indicating that 21 ASIC mining rigs are netting profits of $5 or more daily. As of now, leading the pack in daily earnings is the Microbt Whatsminer M63S, achieving 390 terahash per second (TH/s) of SHA256 hashing power.
Does BTC miner really pay? ›
Bitcoin pays out a mining reward each time a new “block” is entered into the permanent record of transactions. The reward shrinks every few years, but for now, it is 6.25 BTC, which in December 2022 was worth roughly $105,000 as Bitcoin hovered below $17,000.
How high will Marathon stock go? ›
Average Price Target
Based on 20 Wall Street analysts offering 12 month price targets for Marathon Oil in the last 3 months. The average price target is $32.60 with a high forecast of $45.00 and a low forecast of $26.00.
How much bitcoin does MARA hold? ›
Marathon Digital Holdings, Inc. (NASDAQ: MARA) currently owns 17,631 Bitcoins as of April 30, 2024(1).
Is Marathon Digital a buy or sell? ›
Marathon Digital Holdings's analyst rating consensus is a Hold. This is based on the ratings of 6 Wall Streets Analysts.
Marathon Patent Group Stock Prediction 2025
The Marathon Patent Group stock prediction for 2025 is currently $ 40.28, assuming that Marathon Patent Group shares will continue growing at the average yearly rate as they did in the last 10 years. This would represent a 153.15% increase in the MARA stock price.
Is MARA profitable? ›
Zacks Consensus Estimate
This company is expected to post quarterly earnings of $0.02 per share in its upcoming report, which represents a year-over-year change of +166.7%. Revenues are expected to be $193.89 million, up 279.2% from the year-ago quarter.
Why is MARA so volatile? ›
With revenue denominated in Bitcoin and costs/debt denominated in dollars, the BTC/USD exchange rate matters a great deal for the company's balance sheet, profitability, and cash flows. This added operational leverage means that when Bitcoin prices move, MARA stock often moves to an outsized degree.
How do miners get paid after all Bitcoin is mined? ›
The End of Bitcoin Mining Rewards
However, once the maximum supply of 21 million bitcoins is reached, these block rewards will cease. Miners will then solely rely on transaction fees as their compensation for validating transactions and securing the network.
Is Bitcoin mining guaranteed money? ›
Does Bitcoin Mining Actually Pay? It depends on your mining setup and the costs you've incurred to begin mining. It can take years to recoup your costs and start making a profit.
Is Bitcoin mining still profitable? ›
Yes. Crypto mining can be profitable - but there are factors miners need to consider including electricity costs, mining difficulty, and market conditions. All these can significantly impact profitability. Electricity expenses play a crucial role as mining operations consume substantial power.
How much does a Bitcoin miner earn? ›
The processing power required to mine Bitcoin is extremely high, but Bitcoin miners receive 6.25 BTC in reward, roughly $143,000, for mining each block of transactions in the blockchain.
How much does it cost to run 1 Bitcoin miner? ›
Mining a Bitcoin depends on your energy rate per Kwh, it costs $11,000K to mine a Bitcoin at 10 cents per Kwh and $5,170K to mine a Bitcoin at 4.7 cents per Kwh. Learn how and if mining right for you in 2024! As Bitcoin's price goes up, so do the miners' prices.
How much does it cost to send $100 Bitcoin? ›
Bitcoin transaction costs only depend on how big in bytes your transaction is. As such, the dollar value you're sending is irrelevant with Bitcoin. A simple transaction usually costs around 200-2,000 sats or $0.06-$0.60 USD which could be for $100 or $100 million dollars.
How much Bitcoin is mined per day? ›
Bitcoin adds a new block to the ledger about once every 10 minutes. This means that, on average, about 144 transaction blocks are added to the blockchain every day. Because miners are rewarded 6.25 BTC per block, about 900 BTC coins are minted each day.
