Analyst Kevin Dede of H.C. Wainwright reiterated a Buy rating on Marathon Digital Holdings, retaining the price target of $28.00.
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Kevin Dede has given his Buy rating due to a combination of factors, primarily focusing on Marathon Digital Holdings’ strategic expansion into high-performance computing (HPC) through its acquisition of a majority stake in Exaion. This move diversifies Marathon’s operations beyond its traditional bitcoin mining activities, positioning the company to capitalize on the growing market for trusted cloud infrastructure services projected to reach $169 billion by 2028.
Furthermore, Dede emphasizes the potential for significant returns from HPC, particularly as demand for artificial intelligence solutions increases. The acquisition provides Marathon with a credible entry into the HPC sector, enhancing its capabilities and market presence. Despite acknowledging the inherent risks associated with bitcoin volatility and data center operations, Dede supports the Buy rating with a $28 price target, justified by a robust market cap-to-revenue multiple and the current bullish trend in bitcoin prices.
In another report released on July 30, Rosenblatt Securities also reiterated a Buy rating on the stock with a $20.00 price target.