Why I am watching MARA Marathon Digital Holdings like I am watching my figure

Jessica Amir joined discussion · 3 hours ago

This is not normally a stock I would cover. However Marathon Digital Holdings $Marathon Digital(MARA.US)$ is a profitable business that is involved in utility-scale bitcoin mining. I cannot give advice but what I can tell you I that that its expected to grow its revenue by 90%+. So what's not to like about that?

However I'd be a tad cautious as its stock appears overbought at these levels. But the last time it was this overbought it rallied up to a brand new record all time high mirroring the bitcoin price.

It seems attractive as its net income grew 53% in 2023 and its expected to grow 96% this current period (consensus). Revenue growth is expected of 75% in 2024 and 60% in 2025 if you look at consensus. But its quite illiquid and volatile as its linked to the BTC price. See the chart.

Marathon Digital Holdings shares jumped 18% on Monday, hit their highest in 18 weeks after Trump appointed his running mate JD Vance who is pro-crypto.

Insiders hold a 3.3% stake and in the past six months, they increased their holdings by 294%.

However…analysts in the past four week lowered the consensus estimate for the second quarter to a loss of 14 cents per share from a 14 cents per share. See below. However please note that earnings expectations could be low. As MARA has a history of delivering better than expected results. And it beat in 4 of 8 last quarters.

Catalysts? Watch earnings 08/08/24. Bloomberg estimates a 8.24% / 6.09% move on the day. But also note 4 brokers have it as a buy/ 5 as a hold /1 a sell. $22.63 price target.

So if you are trading or investing in this, think of your strategy? What is your strategy? Will you get out after you make a 20% profit? Or do you think this is a business that will continue to grow and innovate? That's up to you? I do think that MicroStrategy $MicroStrategy(MSTR.US)$ MSTR is also worth a look at that's more correlated to BTC and is oversold.

BTC V Mara