Barclays Starts Marathon Digital Holdings (MARA) at Equalweight

Barclays analyst Ramsey El-Assal initiates coverage on Marathon Digital Holdings (NASDAQ: MARA) with a Equalweight rating and a price target of $27.00.

The analyst comments "Key takeaway: We are initiating coverage on MARA Holdings, Inc. (MARA) with an Equal Weight rating and price target of $27. We consider MARA to be one of the world’s largest—and best managed—Bitcoin mining companies, based on the company's total exahash rate. We see the company as increasingly well positioned relative to mining competitors and like the well-timed diversification away from a 100% hosted strategy, toward owning more mining facilities outright. We also acknowledge some optionality around the company’s revenue diversification strategy—which is in very early innings. If you are looking to invest in a Bitcoin miner, we believe MARA is a very compelling choice. However, we have some reservations about Bitcoin mining stocks being the best ways to play the Bitcoin theme. The capital intensity, earnings volatility, and quadrennial halving sentiment headwind have caused the stocks of miners to underperform the price performance of Bitcoin itself (as shown in Figure 1). And as other BTC-linked publicly traded assets become available, miners in general may face more competition for investor dollars. As miners' stock does not seem to correlate as well to underlying Bitcoin prices (see Figure 3), we believe this impacts the investor case."

For an analyst ratings summary and ratings history on Marathon Digital Holdings click here. For more ratings news on Marathon Digital Holdings click here.

Shares of Marathon Digital Holdings closed at $26.03 yesterday.

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