Bitcoin miner Marathon Digital (NASDAQ: MARA) has faced major headwinds with Bitcoin halving this year which reduced the mining rewards to half and doubled the mining complexity. The MARA stock has also suffered with 30% drop year-to-date. However, market analysts are saying that the downside for the MARA stock is limited in the near term and could be poised for a 3x recovery from here onwards. Along with other Bitcoin miners, MARA Holdings is also focused on catering to the demands of AI through its existing infrastructure.
MARA Stock Rally to Begin Soon on Macquarie Buy Call
Robert Samuels, VP of Investor Relations at Marathon Digital, shared his excitement following Macquarie’s positive recommendation of Marathon Holdings stock.
The report from Macquarie stated that Marathon Digital continues to lead the crypto mining industry, adding that “MARA is not only a top performer in mining but also supplies physical and digital infrastructure, including its mining pool, miner firmware, an Auradine stake (an ASIC manufacturer), and advanced two-phase liquid immersion cooling.”
Macquarie also stated that Marathon is working to expand its capacity eyeing an operational capacity of 50 EH/s by the end of 2024. It is also building a strong social license through its innovative energy harvesting efforts in stranded gas and heat recycling.
Excited to have Macquarie recommending @MARAHoldings stock. According to their analyst, “Marathon continues to sit at the top of the sector on overall capacity with a whopping 35.2 EH/s energized as of the end of August 2024. . . . MARA is also a supplier of physical and digital…
— Robert Samuels (@RobSamuelsIR) September 25, 2024
The MARA Stock has been in demand recently with Canada’s Public Sector Pension Investment Board making fresh purchases of the stocks. As per the latest report, the firm has purchased a total of 600,518 MARA shares valued at nearly $12 million. By the end of the second quarter, the Public Sector Pension Investment Board owned 0.21% of Marathon Digital.
The MARA Holdings share price is currently trading at $16.14. for a long period, it has been trading in the accumulation range of $13-$16. Market analysts are predicting a violent breakout on the upside for the MARA stock with the possibility of a 3x rally if the Bitcoin price resumes rally to $90,000. Following the Bitcoin halving, Bitcoin miners’ revenue slumped by nearly 57% leading to major stock corrections. However, these days seem to be behind us!
$MARA – Marathon
Most #Bitcoin miners are in a massive compression zone where a violent breakout to the upside is almost imminent. Until then, some ST volatility can still be expected
Accumulation range: $13-16
This is VERY limited downside for the potential 2-3x that’s… pic.twitter.com/zQ1BQTuv52
— Danny Marques | Investing Informant 📊📈 (@Invst_Informant) September 23, 2024
Marathon Digital Making the AI Push
In his recent appearance on Bloomberg TV, Marathon Digital CEO Fred Thiel explained how the Bitcoin miner is making the push adding that the company’s two-phase immersion cooling technology could help the AI industry reduce its water consumption.
Thiel explained that this innovative solution offers a cost-effective alternative for cooling AI infrastructure, which typically relies on large amounts of water.
On @BloombergTV, MARA Chairman and CEO @fgthiel explained how MARA’s two-phase immersion technology can help reduce the AI industry’s need for water consumption in a cost-effective way when cooling their infrastructure. Watch: pic.twitter.com/OtQgspYf9I
— MARA (@MARAHoldings) September 25, 2024
On the other hand, Marathon Digital has been aggressively buying Bitcoins in recent weeks. Last month, Marathon announced to conversion of $250 million in convertible notes to Bitcoin.
Bhushan Akolkar
Bhushan is a FinTech enthusiast with a keen understanding of financial markets. His interest in economics and finance has led him to focus on emerging Blockchain technology and cryptocurrency markets. He is committed to continuous learning and stays motivated by sharing the knowledge he acquires. In his free time, Bhushan enjoys reading thriller fiction novels and occasionally explores his culinary skills.
Disclaimer: The presented content may include the personal opinion of the author and is subject to market condition. Do your market research before investing in cryptocurrencies. The author or the publication does not hold any responsibility for your personal financial loss.
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