Shares of Bitcoin miner Marathon Digital Holdings (MARA) have raced higher today ahead of its Q1 earnings release.
Trade Hopes
MARA stock was 5% better off in pre-market trading as investors breathlessly get ready for its update. That’s despite what are expected to be a mixed set of results.
Analysts are expecting earnings per share to come in at -$0.25 on revenue of $219.4 million. This would mean a 119.8% decrease for EPS but a 32.8% year-over-year increase for revenues, according to TipRanks’ data.
Marathon has also been helped today by a near 3% climb in the price of Bitcoin to $99,600. This is down to the high expectation that the U.S. is set to sign a trade deal with a major country, presumably the U.K. later today.
This could signal the beginning of a flurry of trade deals between the U.S. and major powers such as China, India and the EU in the wake of President Trump’s tariff strategy. Indeed the President has said this will be the “first of many.”
Bitcoin Forecast to Soar
An easing of these trade tensions and a lowering of the chance that it could lead to a global recession could lead to renewed appetite for so-called riskier assets such as Bitcoin.
Its price has been fairly flat in recent times rising just 0.03% in the last three months. However, there are hopes that it could push to and beyond $100,000.
It is also likely to be helped by a weaker dollar, falling bond yields and softer inflationary pressures improving investment sentiment around cryptocurrencies and technology.
Some Bitcoin commentators like El Salvador’s Bitcoin advisor Max Keiser believes the price could soar to $500,000 in “a jiffy.”
Marathon certainly hopes it crosses that finishing line. It holds 48,237 BTC, which is worth roughly $4.64 billion.
Is MARA a Good Stock to Buy Now?
On TipRanks, MARA has a Moderate Buy consensus based on 4 Buy, 4 Sell and 1 Hold rating. Its highest price target is $28. MARA stock’s consensus price target is $19.81 implying an 48.61% upside.
