Education
About Us
Working with TipRanks
Follow Us
Marathon Digital Holdings, Inc. (MARA)
:MARA
Top Page
Marathon Digital Holdings
(NASDAQ:MARA)55Neutral
Positive Factors
Growth Strategy
Marathon targets inexpensive acquisitions at a lower cost than its peers, reinforcing its competitive advantage and enabling strategic expansion.
Market Position
MARA is the undisputed market leader among public miners, and it has taken full advantage of its industry-leading scale.
Negative Factors
Financial Concerns
The stock has underperformed due to macro concerns about interest rates and its aggressive share issuance.
Guidance Uncertainty
MARA did not provide FY25 guidance, which may lead to uncertainty among investors.
Marathon Digital Holdings (MARA) vs. S&P 500 (SPY)
Market Cap
$4.64B
Dividend YieldN/A
Average Volume (3M)38.39M
Price to Earnings (P/E)9.8
Beta (1Y)2.83
Revenue Growth69.38%
EPS Growth30.30%
CountryUS
Employees60
SectorFinancial
Sector Strength93
IndustryCapital Markets
Share Statistics
EPS (TTM)1.37
Shares Outstanding345,816,830
10 Day Avg. Volume58,503,655
30 Day Avg. Volume38,389,526
Financial Highlights & Ratios
PEG Ratio0.32
Price to Book (P/B)N/A
Price to Sales (P/S)8.44
Price to Cash Flow (P/CF)-4.40
P/FCF Ratio0.00
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
$23.67Price Target Upside76.51% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering12
Marathon Digital Holdings Business Overview & Revenue Model
Company DescriptionMarathon Digital Holdings, Inc. is a digital asset technology company primarily focused on cryptocurrency mining, particularly Bitcoin. Headquartered in Las Vegas, Nevada, the company operates one of the largest and most energy-efficient Bitcoin mining operations in North America. Marathon Digital Holdings aims to build a blockchain ecosystem and support the Bitcoin network by generating newly minted Bitcoin as well as securing transactions on the network.
How the Company Makes MoneyMarathon Digital Holdings makes money primarily through the mining of Bitcoin. The company earns revenue by validating Bitcoin transactions and adding them to the blockchain, for which it receives a block reward in the form of newly minted Bitcoins. Additionally, Marathon may earn transaction fees associated with the processing of transactions on the Bitcoin network. The company invests in advanced mining hardware and optimizes its operations to maximize mining efficiency and profitability. Partnerships with energy providers and mining pool operators can also play a role in its operational effectiveness, contributing to its overall earnings.
Marathon Digital Holdings Financial Statement Overview
Summary
Marathon Digital Holdings shows impressive revenue growth and improved net income, but struggles with profitability margins and cash flow management. The increased leverage poses risks, yet the strong equity base provides stability.Income Statement
Marathon Digital Holdings has shown significant revenue growth from $1.18M in 2019 to $656.38M in 2024. However, the company struggles with profitability as evidenced by persistent negative gross profit margins, indicating costs are exceeding revenues. Despite this, there is notable improvement in net income, turning positive in recent years, which is a promising sign.55
Neutral
Balance Sheet
The balance sheet reflects a strong equity base with an increasing trend in stockholders' equity from $3.65M in 2019 to $4.23B in 2024. However, the debt-to-equity ratio has increased, indicating higher leverage, which could pose financial risk. The equity ratio remains healthy, suggesting a solid asset base funded by equity.60
Neutral
Cash Flow
Marathon Digital Holdings faces challenges in cash flow management, with consistently negative free cash flow and operating cash flow across the years. Despite improvements in financing activities, the company struggles to generate sufficient cash from operations, which could affect its ability to sustain operations without external financing.40
Negative
| Breakdown | ||||
| Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 |
|---|---|---|---|---|
| Income Statement | Total Revenue | |||
| 656.38M | 387.51M | 117.75M | 159.16M | 4.36M | Gross Profit |
| -159.37M | -15.34M | -33.67M | 116.77M | -7.37M | EBIT |
| 306.11M | 220.91M | -663.87M | -12.66M | -9.83M | EBITDA |
| 1.06B | 467.46M | -601.78M | 11.63M | -7.26M | Net Income Common Stockholders |
| 541.25M | 261.17M | -686.74M | -37.10M | -10.52M |
| Balance Sheet | Cash, Cash Equivalents and Short-Term Investments | |||
| 391.77M | 357.31M | 103.70M | 492.30M | 141.32M | Total Assets |
| 6.80B | 1.99B | 1.20B | 1.45B | 313.25M | Total Debt |
| 2.47B | 326.13M | 783.51M | 728.41M | 184.10K | Net Debt |
| 2.08B | -31.18M | 679.81M | 459.88M | -141.14M | Total Liabilities |
| 2.67B | 375.05M | 809.30M | 765.22M | 1.51M | Stockholders Equity |
| 4.23B | 1.62B | 385.94M | 683.02M | 311.74M |
| Cash Flow | Free Cash Flow | |||
| -930.48M | -343.26M | -217.59M | -727.14M | -91.16M | Operating Cash Flow |
| -677.02M | -315.65M | -176.48M | -18.22M | -7.77M | Investing Cash Flow |
| -596.41M | 4.59M | -390.23M | -891.92M | -81.29M | Financing Cash Flow |
| 3.95B | 555.86M | 410.65M | 1.04B | 229.69M |
Marathon Digital Holdings Technical Analysis
Negative
13.41
Price Trends
17.04
Negative
19.14
Negative
18.78
Negative
Market Momentum
-0.89
Negative
38.61
Neutral
69.27
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For MARA, the sentiment is Negative. The current price of 13.41 is below the 20-day moving average (MA) of 14.92, below the 50-day MA of 17.04, and below the 200-day MA of 18.78, indicating a bearish trend. The MACD of -0.89 indicates Negative momentum. The RSI at 38.61 is Neutral, neither overbought nor oversold. The STOCH value of 69.27 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for MARA.
Marathon Digital Holdings Risk Analysis
Marathon Digital Holdings disclosed 52 risk factors in its most recent earnings report. Marathon Digital Holdings reported the most risks in the “Finance & Corporate” category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
Marathon Digital Holdings Peers Comparison
Overall Rating
UnderperformOutperform
Sector (64)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
64 Neutral | $14.34B | 10.61 | 9.28% | 4.07% | 18.04% | -9.54% | |
63 Neutral | $2.65B | 21.95 | 4.35% | ― | 34.20% | ― | |
55 Neutral | $4.64B | 9.77 | 18.84% | ― | 69.38% | 30.30% | |
46 Neutral | $385.40M | ― | -2.15% | ― | 27.99% | 90.99% | |
44 Neutral | C$724.20M | ― | -31.62% | ― | 45.19% | -33.48% | |
42 Neutral | $1.41B | ― | -7.61% | ― | 19.26% | -14.10% | |
37 Underperform | $31.47M | ― | 242.25% | ― | ― | ― |
* Financial Sector Average
Performance Comparison
MARA
Marathon Digital Holdings
13.41
-6.78
-33.58%
RIOT
Riot Platforms
7.56
-4.06
-34.94%
TSE:HIVE
HIVE Digital Technologies
2.48
-1.75
-41.37%
TSE:BITF
Bitfarms
1.62
-1.54
-48.73%
CIFR
Cipher Mining
3.08
-0.06
-1.91%
ARBK
Argo Blockchain
0.39
-1.40
-78.21%
Marathon Digital Holdings Earnings Call Summary
Earnings Call Date: Feb 26, 2025 | % Change Since: 7.71% | Next Earnings Date: May 7, 2025
Earnings Call Sentiment Positive
The earnings call reflects a strong performance with significant revenue and net income growth, driven by strategic energy integration and AI development plans. However, challenges related to Bitcoin market volatility, competition, and regulatory landscape pose ongoing risks.Highlights
Record-Breaking Revenue and Growth
MARA reported record high revenues, net income, and adjusted EBITDA for Q4 and full year 2024. Revenue increased 37% to $214.4 million in Q4 2024 from $156.8 million in Q4 2023. For 2024, revenues grew 69% to $656.4 million from $387.5 million in 2023. Net income increased 248% to $528.3 million in Q4 2024 from $151.8 million in Q4 2023.
Vertically Integrated Energy Strategy
MARA transitioned into a vertically integrated energy and digital infrastructure company by acquiring five data centers, increasing owned capacity to approximately 70%. Energy costs per kilowatt-hour were reduced to $0.039, and cost of revenue per petahash per day improved by 5% this quarter and 17% for the full year.
AI and Technology Development
MARA is focusing on developing AI technology and solutions, planning to deploy 30 megawatts of inference AI to compute using liquid cooling technology. The company is investing in R&D to establish a presence in AI markets, creating long-term revenue opportunities.
Lowlights
Bitcoin Price Volatility and Market Conditions
Bitcoin's price has been affected by a risk-off trade environment, correlated with equities, and influenced by macroeconomic factors like recessionary signals and high consumer prices. This volatility poses challenges to profitability and strategic planning.
Competitive and Regulatory Challenges
Increasing competition in the crypto mining sector and potential regulatory changes in the US and abroad present challenges. The company needs to navigate these issues to sustain profitability and ensure long-term growth.
Company Guidance
During MARA's Q4 2024 earnings call, the company announced record high revenues and net income, with revenue increasing by 37% to $214.4 million in Q4 2024 compared to Q4 2023, and net income surging by 248% to $528.3 million. For the full year 2024, revenues grew 69% to $656.4 million, while net income increased by 107% to $541 million. Adjusted EBITDA for Q4 2024 reached $794.4 million, up from $259 million in Q4 2023, and full-year adjusted EBITDA was reported at $1.2 billion. MARA's direct energy cost per Bitcoin for 2024 was $28,801, with a cost per kilowatt-hour of $0.039 at their own sites. The company also expanded its energy capacity by 300%, increasing its portfolio from 0.5 gigawatts to 1.7 gigawatts, and emphasized its transformation into a vertically integrated energy and technology solutions provider. Looking ahead, MARA plans to focus on AI opportunities and expects to continue reducing costs by owning and generating its own power, targeting a near-zero cost of energy.Marathon Digital Holdings Corporate Events
Executive/Board ChangesBusiness Operations and Strategy
Marathon Digital Updates Equity Incentive Plan Awards
Neutral
Feb 28, 2025
On February 28, 2024, Marathon Digital Holdings’ Talent, Culture and Compensation Committee approved new award agreements for restricted stock units (RSUs) and performance-based RSUs (PSUs) under the company’s Amended and Restated 2018 Equity Incentive Plan. The RSUs will have a new vesting schedule, with 30% vesting immediately and 70% vesting over three years. The PSUs will include both performance-based and time-based vesting conditions, with performance targets such as Hashrate Hours, Total Exahash, and Megawatts, and a maximum payout of 249% of the target shares. In the event of a Change in Control, unvested PSUs will be treated similarly to RSUs with performance conditions deemed achieved at target level.
Shareholder Meetings
Marathon Digital Postpones Stockholders Meeting to February 19
Neutral
Feb 10, 2025
On February 10, 2025, MARA Holdings, Inc. announced the postponement of its Special Meeting of Stockholders to February 19, 2025, to allow more time for broader participation in voting. The company encourages stockholders to vote on the proposals outlined in the proxy statement, with unchanged prior votes being counted unless altered by the stockholders.
Business Operations and StrategyFinancial Disclosures
Marathon Digital Reports Significant BTC Yield Increase
Positive
Dec 19, 2024
Marathon Digital Holdings reported a BTC Yield of 22.5% from October 1 to December 18, 2024, and 60.9% from January 1 to December 18, 2024. This KPI reflects the change in the ratio of bitcoin holdings to fully diluted shares, which the company uses to gauge its bitcoin acquisition strategy and shareholder value. The metric is intended to provide investors with insight into the company’s strategy of funding bitcoin purchases through equity, although it does not account for debt or other financial measures, and its indicative limitations should be considered by stakeholders.
Glossary
OutperformA stock rated as "Outperform" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock is likely to deliver higher returns compared to the average returns of other stocks in the same sector or market index. Investors might consider this stock a good buying opportunity.
NeutralA stock rated as "Neutral" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly attractive nor unattractive for investment. Investors may consider holding onto the stock, as it is not expected to either significantly outperform or underperform the market.
UnderperformA stock rated as "Underperform" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock may deliver lower returns compared to the average returns of other stocks in the same sector or market index. Investors might consider selling the stock or avoiding it as an investment.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.