Cantor Fitzgerald Initiates Coverage on Marathon Digital with Overweight Rating
On Thursday, Cantor Fitzgerald initiated coverage of Marathon Digital Holdings (NASDAQ:MARA), a leading company in the Bitcoin mining industry, assigning it an overweight rating and setting a price target of $21.00 per share. The investment bank highlighted Marathon's position as the largest publicly traded Bitcoin miner, boasting an impressive installed hash rate of 36.9 EH/s by the end of September.
Marathon Digital Holdings is renowned for its extensive portfolio that includes over 250,000 Bitcoin mining machines across both owned and leased infrastructure totaling 1.1 GW. The company has shifted its strategy from relying on third-party hosting to owning and operating its own Bitcoin mining infrastructure—a move aimed at significantly reducing overall costs associated with their operations.
The analysts also noted that Marathon’s business extends beyond mere Bitcoin mining activities; they are involved in Kaspa mining and developing proprietary cooling technology for data centers. Additionally, they have ventured into energy recovery segments aiming to utilize untapped energy sources effectively. Technological advancements within the Bitcoin ecosystem include developments like Slipstream for transactions and Andura—an innovative layer-2 network built upon Bitcoin.
Cantor Fitzgerald's analysis suggests potential benefits for Marathon should future increases in Bitcoin prices occur while indicating possible underestimations by the market regarding profitability improvements through vertical expansion efforts undertaken by this enterprise—which makes current stock levels appear attractive according to them.
In other recent news related specifically to financial performance metrics reported during the Q2/2024 period: despite achieving revenue growth rates reaching up to +78% ($145 million USD) compared to previous quarters’ figures - net losses amounted to approximately (-$200M). Furthermore, plans were announced concerning the issuance of convertible bonds worth a total value of roughly two hundred fifty million dollars maturing in 2031, intended primarily for purchasing additional bitcoins alongside general corporate purposes outlined therein too!
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