Bull Thesis on $MARA: A Comprehensive Analysis

Hey everyone, I want to share my bull thesis on Marathon Digital Holdings ($MARA). This analysis is divided into two parts: fundamentals and technicals. Let’s dive in!

Fundamentals
1. Strong Earnings Potential:
- Estimated EPS: Based on Q1 earnings of $1.3 per share, the trailing twelve months (TTM) EPS is estimated to be at least $4 per share.
- Current Valuation: With a current share price around $20, this gives $MARA a Price-to-Earnings (PE) ratio of 5.
- Potential Upside: If investors apply the S&P 500’s minimum PE ratio of 15, this suggests a minimum potential price of $60 by the end of the year (EOY).
2. Bitcoin Holdings and Mining Power:
- Bitcoin Holdings: $MARA Holdings (MARA.US)$ holds 18,000 Bitcoins on its balance sheet, which provides significant asset backing.
- Mining Capacity: The company currently has around 30 EH/s (exahashes per second) of mining power, with a target of increasing this to 50 EH/s by EOY. This expansion is expected to boost revenue and profitability.

Technicals
1. Weekly Chart Analysis:
- 5-Year Time Frame: The stock is close to breaking out of a cup and handle formation with a neckline at $27.
- Profit Target: The projected profit target from this breakout is $50.
2. Daily Chart Analysis:
- Year-to-Date (YTD) Performance: On the daily chart, the stock appears to be forming a triple bottom with a neckline at $21.
- Profit Target: The profit target from this pattern aligns with the cup and handle neckline at $27.
- Support and Risk Management: The current price is around $19.50, which acts as a support level. This is a good point for setting a stop-loss to manage risk.

Catalysts
- Bitcoin Price Movement: A key catalyst is Bitcoin breaking the $70,000 mark (which is also its long term cup and handle neckline) , which would likely drive $MARA’s stock price higher.
- Mining Reports: Monthly mining reports showcasing increased production and efficiency will bolster investor confidence in the company’s performance targets.