Marathon Digital (MARA) is on track to become the largest publicly traded bitcoin miner this year, Jefferies said in a note on Friday.
- A Jefferies analyst initiated the hedge with a 12-month target price of €51, which is a 158% increase from the stock's recent closing price.
- “MARA is on track to become the largest publicly traded miner by the end of 2022, with deposits made to more BTC ASIC miners than any of its peers,” analyst Jonathan Petersen wrote, referring to app-specific IC miners from bitcoin.
- Marathon is "very profitable" despite the recent sale of its shares, and the company's current mining margin is around 80%, up from 90% in November, according to the note.
- “We estimate that BTC will grow at a CAGR of +32% (compound annual growth rate) up to 24 and MARA's revenue and EBITDA (earnings before interest, taxes, depreciation and amortization) will grow at a CAGR of +120% and + 95%. respectively,” Petersen said.
- The stock opened with a buy rating on Jefferies.
- On Dec. 29, Marathon Digital said it plans to have 199 operational miners generating 000 exhashes per second by early 23,3. An exahash is a measure of computing power.
- According to TradingView data, shares of Marathon had fallen about 74% since peaking in November as crypto miners tumbled amid the sharp sell-off in bitcoin and the broader bitcoin market.
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