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Marathon Digital Holdings (MARA)
NASDAQ:MARA
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Marathon Digital Holdings
(NASDAQ:MARA)
Rating:50Neutral
Price Target:
$15.50
▼(-1.77%Downside)
Positive Factors
Market Position
MARA is the undisputed market leader among public miners, and it has taken full advantage of its industry-leading scale.
Strategic Initiatives
MARA is focusing on lowering mining energy costs through strategic initiatives, such as the acquisition of a wind farm and flare gas-to-power assets.
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 Performance
A non-cash, fair value negative price adjustment caused MARA's per share earnings to plummet.
Operational Challenges
MARA reported an adj. EBITDA miss resulting from higher mining costs and SG&A.
Stock Performance
The stock has underperformed due to macro concerns about interest rates and its aggressive share issuance.
Marathon Digital Holdings (MARA) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$5.55B
Dividend YieldN/A
Average Volume (3M)45.74M
Price to Earnings (P/E)9.6
Beta (1Y)2.05
Revenue Growth40.57%
EPS Growth-152.87%
CountryUS
Employees171
SectorFinancial
Sector Strength83
IndustryFinancial - Capital Markets
Share Statistics
EPS (TTM)-1.55
Shares Outstanding351,927,730
10 Day Avg. Volume42,628,219
30 Day Avg. Volume45,743,693
Financial Highlights & Ratios
PEG Ratio0.11
Price to Book (P/B)0.92
Price to Sales (P/S)0.00
P/FCF Ratio-4.63
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
$19.08Price Target Upside20.91% Upside
Rating ConsensusHold
Number of Analyst Covering8
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 makes money primarily through the mining of Bitcoin. The company earns revenue by validating Bitcoin transactions and adding them to the blockchain, for which it receives a block reward in the form of newly minted Bitcoins. Additionally, Marathon may earn transaction fees associated with the processing of transactions on the Bitcoin network. The company invests in advanced mining hardware and optimizes its operations to maximize mining efficiency and profitability. Partnerships with energy providers and mining pool operators can also play a role in its operational effectiveness, contributing to its overall earnings.
Marathon Digital Holdings Earnings Call Summary
Earnings Call Date:May 08, 2025
(Q1-2025)
| % Change Since: 10.43%|
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 shows impressive revenue growth and improved net income, but struggles with profitability margins and cash flow management. The increased leverage poses risks, yet the strong equity base provides stability.Income Statement
Marathon Digital Holdings has shown significant revenue growth from $1.18M in 2019 to $656.38M in 2024. However, the company struggles with profitability as evidenced by persistent negative gross profit margins, indicating costs are exceeding revenues. Despite this, there is notable improvement in net income, turning positive in recent years, which is a promising sign.55
Neutral
Balance Sheet
The balance sheet reflects a strong equity base with an increasing trend in stockholders' equity from $3.65M in 2019 to $4.23B in 2024. However, the debt-to-equity ratio has increased, indicating higher leverage, which could pose financial risk. The equity ratio remains healthy, suggesting a solid asset base funded by equity.60
Neutral
Cash Flow
Marathon Digital Holdings faces challenges in cash flow management, with consistently negative free cash flow and operating cash flow across the years. Despite improvements in financing activities, the company struggles to generate sufficient cash from operations, which could affect its ability to sustain operations without external financing.40
Negative
| Breakdown | ||||
| Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 |
|---|---|---|---|---|
| Income Statement | Total Revenue | |||
| 656.38M | 387.51M | 117.75M | 159.16M | 4.36M | Gross Profit |
| -159.37M | -15.34M | -33.67M | 116.77M | -7.37M | EBIT |
| 306.11M | 220.91M | -663.87M | -12.66M | -9.83M | EBITDA |
| 1.06B | 467.46M | -601.78M | 11.63M | -7.26M | Net Income Common Stockholders |
| 541.25M | 261.17M | -686.74M | -37.10M | -10.52M |
| Balance Sheet | Cash, Cash Equivalents and Short-Term Investments | |||
| 391.77M | 357.31M | 103.70M | 492.30M | 141.32M | Total Assets |
| 6.80B | 1.99B | 1.20B | 1.45B | 313.25M | Total Debt |
| 2.47B | 326.13M | 783.51M | 728.41M | 184.10K | Net Debt |
| 2.08B | -31.18M | 679.81M | 459.88M | -141.14M | Total Liabilities |
| 2.67B | 375.05M | 809.30M | 765.22M | 1.51M | Stockholders Equity |
| 4.23B | 1.62B | 385.94M | 683.02M | 311.74M |
| Cash Flow | Free Cash Flow | |||
| -930.48M | -343.26M | -217.59M | -727.14M | -91.16M | Operating Cash Flow |
| -677.02M | -315.65M | -176.48M | -18.22M | -7.77M | Investing Cash Flow |
| -596.41M | 4.59M | -390.23M | -891.92M | -81.29M | Financing Cash Flow |
| 3.95B | 555.86M | 410.65M | 1.04B | 229.69M |
Marathon Digital Holdings Technical Analysis
Positive
15.78
Price Trends
13.93
Positive
14.84
Positive
16.89
Negative
Market Momentum
0.26
Positive
55.15
Neutral
52.54
Neutral
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 15.78 is above the 20-day moving average (MA) of 15.53, above the 50-day MA of 13.93, and below the 200-day MA of 16.89, indicating a neutral trend. The MACD of 0.26 indicates Positive momentum. The RSI at 55.15 is Neutral, neither overbought nor oversold. The STOCH value of 52.54 is Neutral, 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 3 New Risks
1.
Our ongoing at-the-market stock issuances contribute to stockholder dilution and may intensify due to our HODL strategy. Q4, 2024
2.
Uncertainty in accounting standards for bitcoin and other cryptocurrencies may lead to financial restatements and business disruptions. Q4, 2024
3.
We may experience liquidity constraints and need additional capital, which may not be available to us on favorable terms, or at all. Q4, 2024
Marathon Digital Holdings Peers Comparison
Overall Rating
UnderperformOutperform
Sector (64)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
64 Neutral | $12.85B | 9.81 | 7.59% | 16985.65% | 12.30% | -7.71% | |
64 Neutral | $550.62M | 8.82 | -23.29% | ― | 53.68% | -265.12% | |
62 Neutral | $2.35B | ― | -3.39% | ― | 130.86% | -22.83% | |
54 Neutral | $572.50M | 322.94 | 1.33% | ― | 174.88% | -97.01% | |
51 Neutral | $1.18B | ― | -18.49% | ― | -0.65% | -808.88% | |
51 Neutral | $1.67B | ― | -56.12% | ― | 31.85% | -34.27% | |
50 Neutral | $5.55B | 9.58 | -10.61% | ― | 40.57% | -152.87% |
* Financial Sector Average
Performance Comparison
MARA
Marathon Digital Holdings
15.78
-3.68
-18.91%
WULF
TeraWulf Inc
4.35
1.26
40.78%
BTBT
Bit Digital
2.65
-0.07
-2.57%
CIFR
Cipher Mining
3.90
-0.28
-6.70%
IREN
Iris Energy
9.75
-0.56
-5.43%
FUFU
BitFuFu
3.52
-0.05
-1.40%
Marathon Digital Holdings Corporate Events
Private Placements and FinancingBusiness Operations and Strategy
Marathon Digital’s New $2 Billion Stock Offering
Neutral
Mar 28, 2025
On March 28, 2025, Marathon Digital Holdings entered into an At The Market Offering Agreement with several financial agents to sell up to $2 billion of its common stock. This new agreement replaces a previous one from October 2023, which allowed for the sale of up to $1.5 billion in stock, marking a strategic move to potentially increase capital through the market.
Glossary
OutperformA stock rated as "Outperform" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock is likely to deliver higher returns compared to the average returns of other stocks in the same sector or market index. Investors might consider this stock a good buying opportunity.
NeutralA stock rated as "Neutral" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly attractive nor unattractive for investment. Investors may consider holding onto the stock, as it is not expected to either significantly outperform or underperform the market.
UnderperformA stock rated as "Underperform" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock may deliver lower returns compared to the average returns of other stocks in the same sector or market index. Investors might consider selling the stock or avoiding it as an investment.
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.