Crypto Miner Stock MARA: The Addition Your Portfolio Needs?

Zahir Khan, King’s College London

Overview

Marathon Digital Holdings is an American crypto-mining company that, like other crypto-mining companies, is focused on building the largest mining operation in North America. But what sets Marathon Digital Holdings apart from other crypto-mining companies is that the company is focused on carrying out their operations with one of the lowest energy costs in the market. This has allowed profits and, in turn, the company’s EPS to sky rocket in recent times, evident by the companies March 2021 quarterly financials in which their EPS had increased by a tremendous 825% to 0.87 per share. What is even more remarkable is the company’s projected stock prices in the future.

Analysis

On August 3rd 2021, the company announced its Bitcoin monthly production had increased by 66% month over month to approximately 442.2 BTC in July. Total Bitcoin holdings has also grown to approximately 6225.6 BTC with 4287 miners currently in transit. On August 1st 2021, the company also announced the purchase of an additional 30,000 S19 Pro ASIC miners from Bitmain.

What is key to note is that the S19 Pro ASIC miner is the world’s most powerful bitcoin miner yet. It is unsurprising to then see that forecasters estimate Marathon’s EPS to increase substantially to 1.22 by the end of 2021. But more impressively, following 2021, forecasters estimate Marathon’s EPS to almost quadruple by December 2022 and reach a high EPS of 4.65. Many optimistic analysts estimate this EPS figure to reach even higher at around 6.72.

Given current news and speculation for the future, Marathon’s stock price has increased substantially by 10.99% from $36.70 per share to $40.20 on Friday 27th August alone. This demonstrates the potential short term gains that many investors are missing out on but the long term expected growth in the Marathon stock is mind-blowing compared to the short term gains. The one year price prediction is estimated to hit $50.49, a huge 25% increase from the current stock price of $40.20. By 2026, the company’s stock price is estimated to increase by 148.91%. Essentially meaning that a mere $100 investment may increase up to $248.91 in 2026. Thus, not only are Marathon Digital a great short term stock for investors to invest in but an extremely profitable long term stock. I advise investors to invest into the company’s shares and for holders to continue holding in order to reap the, potentially, tremendous profits, gained by the company’s expected and continuous growth.

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