Bitcoin Miners to Buy: Marathon Digital (MARA)
MARA stock is probably the most undervalued name among Bitcoin miners. In November 2021, the stock had surged to highs of $83.45. However, with Bitcoin trending lower, the stock trades at $27.88 as of opening on Feb. 10.
Assuming a scenario where Bitcoin recovers to $70,000 levels, MARA stock can potentially re-test highs. Therefore, there is a case for multi-fold returns from current levels.
It’s also worth noting that the company is on a high-growth trajectory. For Q3 2021, Marathon reported revenue growth of 76% on a year-on-year basis to $51.7 million. For the same period, the company increased its hash rate to 2.7EH/s.
However, by mid-2022, Marathon Digital expects hash rate of 13.3 EH/s. With multi-folds growth in mining capacity, revenue is expected to surge in 2022 and 2023.
To put things into perspective, Marathon expects to mine 66 Bitcoins per day after mid-2022. Even at a Bitcoin price of $45,000, the company is positioned for annualized revenue of $1 billion.
It’s worth mentioning here that Marathon has $623.7 million in cash and equivalents. Additionally, the total liquidity buffer is $1.1 billion considering the Bitcoins held in the balance sheet. With financial flexibility likely to increase significantly in 2022, Marathon will be positioned for the next leg of expansion.
