Jefferies Says Marathon Digital Has Near 160% Upside Potential, Initiates Coverage

Marathon Digital (MARA) is on pace to become the largest publicly listed bitcoin miner this year, Jefferies said in a note on Friday.

The bank’s analyst also started coverage with a 12-month price target of $51, implying a 158% increase from recent close.“MARA is on track to be the largest publicly-traded miner by the end of 2022, with deposits paid on more BTC ASIC miners than any of its peers,” analyst Jonathan Petersen wrote.Marathon is “highly profitable” despite the recent selloff as the company’s mining margin is around 80%, compared to about 90% in November, according to the note.“We estimate that BTC will rise at a +32% CAGR through ’24 and that MARA’s revenue and EBITDA will rise at a +120% and +95% CAGR, respectively,” Petersen said.The stock has been initiated with a buy rating by Jefferies.On Dec. 29, Marathon Digital said it expects to have 199,000 operational miners generating 23.3 exahashes per second by early 2023.Marathon’s stock fell about 74% since reaching its November peak, according to TradingView data, as the crypto miners tumbled with sharp selloff in bitcoin and broader crypto market.

Read more: Miners Remain Unfazed by Crypto Sell-Off, Expect More M&A

Previous post Goldman: Bitcoin, Altcoins to Become More Correlated With Traditional Financial-Market Variables
Next post Crypto Industry Heavyweights Form Political Action Committee for U.S. Midterms: Report
Generated by Feedzy
%d bloggers like this: