Analyzing Marathon Digital Stock Performance

Bitcoin’s price has come down from all-time highs hit on November 10, 2021, and many of the publicly-traded bitcoin mining stocks saw their prices drop along with it. Marathon Digital Holdings (MARA) was no exception to this rule.

Corporate Growth

Its last two earnings reports were not its strongest showing, but Marathon did have a strong year in 2021 overall. On January 3, 2022, Marathon released its 2021 full year and December updates, including these notable highlights:

  • Accrued 3,197 self-mined bitcoin in fiscal year 2021 (846% increase year-over-year)
  • Increased total bitcoin holdings to approximately 8,133 BTC
  • Reached total cash on hand of approximately $268.5 million
  • Added 72,495 ASIC miners in 2021 (current mining fleet consists of 32,350 active miners producing approximately 3.5 exahashes per second [EH/s]) 

Source

Above is a bar chart of Marthon’s hash rate, its percent of the global hash rate and its forecasts for 2022 and 2023. The decline in Marathon’s percentage of the global hash rate while increasing its own hash rate suggests that its competitors were more aggressively expanding than it was during this time. While Marathon continues to receive miners from its Bitmain deal, it may need to be more aggressive in its expansion efforts.

Marathon successfully built a new mining facility in Hardin, Montana, which led to an increase in its hash rate from 0.2 EH/s in January 2021 to 3.5 EH/s in December 2021. Its next mining facility, set for West Texas, will be ready to operate in Q1 2022. Should all construction follow schedule, Marathon will deploy all of its purchased miners by early 2023; the operation would consist of 199,000 bitcoin miners, producing approximately 23.3 EH/s, making Marathon one of the largest publicly-traded bitcoin miners in the world.


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