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Marathon Digital Holdings, Inc. (MARA)
:MARA

Marathon Digital Holdings (MARA) AI Stock Analysis

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Marathon Digital Holdings

(NASDAQ:MARA)

Rating:48Neutral
Price Target:
$15.00
▼(-4.34%Downside)
Marathon Digital Holdings faces significant financial challenges and valuation concerns, primarily due to its negative net income and reliance on external financing. While there are signs of operational improvements and strategic initiatives, these are offset by market volatility and high leverage, impacting the overall stock score negatively.
Positive Factors
Market Leadership
MARA is the undisputed market leader among public miners, and it has taken full advantage of its industry-leading scale.
Strategic Acquisitions
Investments in renewable energy assets with low operating costs support Marathon's strategy to drive energy costs closer to zero, enhancing long-term sustainability.
Technology Development
MARA remains focused on technology development in its core vertical of power conversion, aiming to drive energy costs to zero.
Negative Factors
Earnings Impact
A non-cash, fair value negative price adjustment caused MARA's per share earnings to plummet.
Financial Performance
MARA reported an adj. EBITDA miss resulting from higher mining costs and SG&A.
Revenue Estimates
The revenue forecasts were based on a bitcoin price estimate that was almost $10,000 higher than the actual average price found in the March quarter.

Marathon Digital Holdings (MARA) vs. SPDR S&P 500 ETF (SPY)

Marathon Digital Holdings Business Overview & Revenue Model

Company DescriptionMarathon Digital Holdings, Inc. operates as a digital asset technology company that mines cryptocurrencies with a focus on the blockchain ecosystem and the generation of digital assets in United States. As of December 31, 2021, it had approximately 8,115 bitcoins, which included the 4,794 bitcoins held in the investment fund. The company was formerly known as Marathon Patent Group, Inc. and changed its name to Marathon Digital Holdings, Inc. in February 2021. Marathon Digital Holdings, Inc. was incorporated in 2010 and is headquartered in Las Vegas, Nevada.
How the Company Makes MoneyMarathon Digital Holdings primarily makes money through its Bitcoin mining operations. By deploying advanced mining hardware, the company solves complex mathematical problems to validate Bitcoin transactions, earning Bitcoin rewards in return. These rewards, which consist of newly minted Bitcoins and transaction fees, constitute the primary revenue stream for the company. Additionally, Marathon may engage in the sale of mined Bitcoins to generate revenue. The company's earnings are significantly influenced by the market price of Bitcoin, the network's mining difficulty, and its operational efficiency. Marathon also seeks to form strategic partnerships and secure favorable energy contracts to minimize costs and maximize profitability.

Marathon Digital Holdings Earnings Call Summary

Earnings Call Date:May 08, 2025
(Q1-2025)
|
% Change Since: 9.73%|
Next Earnings Date:Aug 06, 2025
Earnings Call Sentiment Neutral
The earnings call presented a mixed picture. While there were significant achievements in hash rate increase, revenue growth, and operational efficiency, these were overshadowed by a substantial net loss and unrealized market losses due to Bitcoin price volatility.
Q1-2025 Updates
Positive Updates
Hash Rate Increase
Energized hash rate increased 95% to 54.3 exahash per second in Q1 of 2025 from 27.8 exahash per second in Q1 of 2024.
Revenue Growth
Revenues increased 30% to $213.9 million from $165.2 million in Q1 of 2024.
Operational Efficiency
Daily cost per petahash improved 25% year-over-year, and cost of revenue per petahash per day declined 10% sequentially.
Strategic Infrastructure Developments
Completed construction of a fully-owned 200-megawatt data center in Ohio and energized 25 megawatts of gas-to-power operations in North Dakota and Texas.
Energy Cost Optimization
Purchased energy cost per Bitcoin was $35,728, and cost per kilowatt hour was $0.04.
Negative Updates
Net Loss
Reported a net loss of $533.4 million or negative $1.55 per diluted share in Q1 2025 compared to a net income of $337.2 million in the first quarter of last year.
Unrealized Market Loss
Unrealized fair market value loss of $510.2 million in Q1 due to Bitcoin price fluctuations.
Bitcoin Price Volatility
Bitcoin price as of March 31, 2025, was 12% lower than as of December 31, 2024, impacting financial results.
Company Guidance
During the first quarter of 2025, MARA Holdings provided guidance emphasizing its strategic focus on transforming into a vertically integrated digital energy and infrastructure company. The company reported a 30% increase in revenues to $213.9 million from the previous year, despite a challenging environment with a significant decline in Bitcoin's price and increased network difficulty. MARA achieved a 25% year-over-year improvement in daily cost per petahash and maintained an energy cost per Bitcoin of $35,728. The company completed construction of a 200-megawatt data center in Ohio and energized 25 megawatts of gas-powered operations in North Dakota and Texas. Additionally, MARA is developing a 114-megawatt wind farm in Texas, aiming for full operation in the latter half of the year. The company holds over 48,000 Bitcoin with a HODL strategy and is actively pursuing partnerships with governments and energy corporations to secure low-cost energy solutions. Adjusted EBITDA showed a loss of $483.6 million, reflecting the impact of Bitcoin's price volatility, but MARA remains optimistic about future profitability linked to Bitcoin price recovery and strategic growth in energy-efficient operations.

Marathon Digital Holdings Financial Statement Overview

Summary
Marathon Digital Holdings faces financial challenges with inconsistent revenue growth, negative net income, and high leverage. Despite equity growth, negative cash flows and reliance on financing activities pose significant risks.
Income Statement
45
Neutral
Marathon Digital Holdings shows inconsistent revenue growth with a decrease in total revenue from 2024 to TTM. Gross profit margins are volatile, and the company has significant negative net income in TTM, leading to a negative net profit margin. EBIT and EBITDA margins reflect operational challenges, although EBITDA remains positive due to adjustments.
Balance Sheet
55
Neutral
The balance sheet reflects a high level of debt with a debt-to-equity ratio above 0.7, indicating moderate leverage. However, the company has improved its equity position over the years, showing a positive trajectory. The equity ratio remains stable, suggesting a balanced asset structure despite high liabilities.
Cash Flow
40
Negative
Cash flow analysis reveals a negative free cash flow in TTM, with significant capital expenditures impacting cash reserves. The operating cash flow is negative, indicating potential challenges in generating cash from operations. The company relies heavily on financing activities to maintain liquidity.
BreakdownTTMDec 2024Dec 2023Dec 2022Dec 2021Dec 2020
Income Statement
Total Revenue705.06M656.38M387.51M117.75M159.16M4.36M
Gross Profit14.04M-159.37M-15.34M-33.67M116.77M-7.37M
EBITDA332.61M1.06B467.46M-601.78M11.63M-7.26M
Net Income-329.12M541.25M261.17M-686.74M-37.10M-10.52M
Balance Sheet
Total Assets5.67M6.80B1.99B1.20B1.45B313.25M
Cash, Cash Equivalents and Short-Term Investments474.55K391.77M357.31M103.70M492.30M141.32M
Total Debt1.18M2.47B326.13M783.51M728.41M184.10K
Total Liabilities2.50M2.67B375.05M809.30M765.22M1.51M
Stockholders Equity3.17M4.13B1.62B385.94M683.02M311.74M
Cash Flow
Free Cash Flow-1.23B-930.48M-343.26M-217.59M-727.14M-91.16M
Operating Cash Flow-948.59M-677.02M-315.65M-176.48M-18.22M-7.77M
Investing Cash Flow-3.02B-3.23B4.59M-390.23M-891.92M-81.29M
Financing Cash Flow3.71B3.95B555.86M410.65M1.04B229.69M

Marathon Digital Holdings Technical Analysis

Technical Analysis Sentiment
Positive
Last Price15.68
Price Trends
50DMA
14.96
Positive
100DMA
14.30
Positive
200DMA
16.81
Negative
Market Momentum
MACD
0.07
Negative
RSI
55.20
Neutral
STOCH
84.27
Negative
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For MARA, the sentiment is Positive. The current price of 15.68 is above the 20-day moving average (MA) of 15.31, above the 50-day MA of 14.96, and below the 200-day MA of 16.81, indicating a neutral trend. The MACD of 0.07 indicates Negative momentum. The RSI at 55.20 is Neutral, neither overbought nor oversold. The STOCH value of 84.27 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for MARA.

Marathon Digital Holdings Risk Analysis

Marathon Digital Holdings disclosed 49 risk factors in its most recent earnings report. Marathon Digital Holdings reported the most risks in the "Finance & Corporate" category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks

Marathon Digital Holdings Peers Comparison

Overall Rating
UnderperformOutperform
Sector (58)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
59
Neutral
$3.37B-3.39%130.86%-22.83%
58
Neutral
$419.15M8.82-23.29%53.68%-265.12%
58
Neutral
$1.43B-18.49%-0.65%-808.88%
58
Neutral
$12.55B5.33-2.71%5.27%5.88%-56.03%
57
Neutral
$499.92M296.331.33%174.88%-97.01%
53
Neutral
$1.62B-56.12%31.85%-34.27%
48
Neutral
$5.29B9.58-10.61%40.57%-152.87%
* Financial Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
MARA
Marathon Digital Holdings
15.70
-6.42
-29.02%
WULF
TeraWulf Inc
4.44
-0.61
-12.08%
BTBT
Bit Digital
2.31
-0.93
-28.70%
CIFR
Cipher Mining
4.90
0.32
6.99%
IREN
Iris Energy
15.23
0.84
5.84%
FUFU
BitFuFu
3.23
-1.06
-24.71%

Marathon Digital Holdings Corporate Events

Executive/Board ChangesShareholder MeetingsBusiness Operations and Strategy
Marathon Digital Holds Annual Stockholder Meeting Decisions
Neutral
Jun 27, 2025

On June 26, 2025, Marathon Digital Holdings held its annual meeting of stockholders where key decisions were made regarding company leadership and operations. The election of Class II directors saw Georges Antoun and Jay Leupp elected to serve until 2028. The appointment of PricewaterhouseCoopers LLP as the independent registered public accounting firm for 2025 was ratified. However, the compensation for the Named Executive Officers was not approved by stockholders. An amendment to the 2018 Plan was approved, reflecting strategic adjustments in the company’s governance.

The most recent analyst rating on (MARA) stock is a Hold with a $23.00 price target. To see the full list of analyst forecasts on Marathon Digital Holdings stock, see the MARA Stock Forecast page.

Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.Date of analysis: Jun 26, 2025