Shares of Marathon Digital Holdings (NASDAQ:MARA) sank 6% at the time of writing after the Bitcoin (BTC-USD) miner provided a Production update. In fact, June Bitcoin production dropped 40% year-over-year to 590 BTC due to the April Halving (an event that reduced the reward for mining Bitcoin). Nevertheless, there were some bright spots.
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For starters, the firm saw a 2% month-over-month increase in its average hash rate (the number of calculations a miner can perform per second) to 26.3 EH/s. CEO Fred Thiel mentioned that improvements and the fully operational Ellendale facility helped double their hash rate compared to last year.
In addition, Marathon aims to reach a hash rate of 50 EH/s by the end of the year by upgrading its new sites. It also started a 2-megawatt pilot project in Finland to use heat from its digital operations to warm a community in order to cut carbon emissions and save costs.
The company now holds 18,536 BTC, which is worth roughly $1.1 billion at the time of writing, and plans to sell some of it in the future to support its operations and manage finances.
Is MARA a Good Stock to Buy?
Turning to Wall Street, analysts have a Hold consensus rating on MARA stock based on one Buy, three Holds, and one Sell assigned in the past three months, as indicated by the graphic below. After a 33% rally in its share price over the past year, the average MARA price target of $20.50 per share implies that shares are fairly valued.
