Marathon Digital (NASDAQ:MARA) shares plunged nearly 4% today after the crypto miner’s Bitcoin (BTC-USD) production dropped by almost 40% in June.
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BTC Halving Impacts MARA’s Production
Marathon produced 590 Bitcoins in June, a drop of nearly 40% compared to the prior year period. This decline was largely due to the Bitcoin halving in April. However, operational improvements at its Ellendale facility helped the company increase its hash rate to nearly 26.3 exahash/second in June.
Hash rate is a measure of the computing power used in Bitcoin mining. It indicates how many calculations a miner can perform per second.
Notably, MARA’s Bitcoin hoard now stands at about 18,536 BTC. Considering Bitcoin’s current $60,000 level, MARA’s Bitcoin stash is worth roughly $1.11 billion. The company’s total cash and BTC position is around $1.4 billion.
MARA’s Capacity Addition Continues
MARA plans to increase its hash rate to 50 exahash/second by the end of this year, potentially boosting its crypto production pace. Additionally, MARA added 13,000 miners in June, increasing its total fleet size to 250,000 BTC miners capable of producing up to 31.5 exahash/second.
Market Impact and Analyst Outlook
The recent selloff in cryptocurrencies has weighed on shares of crypto mining companies. Consequently, MARA’s stock price is down about 6% year-to-date. Still, H.C. Wainwright’s Kevin Dede remains optimistic about MARA, with a Buy rating and a $27 price target.
Is MARA Stock a Buy, Sell, or Hold?
On the other hand, the Street has a Hold consensus rating on Marathon Digital. Furthermore, the average MARA price target of $20.50 points to a 7.3% potential downside in the stock.
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