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Marathon Digital 'Well-Positioned,' Says BTIG Analyst

Published 2022-01-18, 12:20 p/m
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By Sam Boughedda

Investing.com — BTIG analyst Greg Lewis initiated coverage on Marathon Digital Holdings Inc (NASDAQ:MARA) with a buy rating and $50 price target Tuesday, telling investors in a note that the company is "well-positioned" in the Bitcoin mining industry.

The miner's share price is down more than 4.5% on Tuesday, weighed by a recent fall in Bitcoin, which is down again today.

Lewis said the company was an early mover in the Bitcoin mining space and its hash capacity of 3.5 EH/s points to 1.9% of the current global hash capacity makes it one of the largest publicly traded BTC miners.

"In what we expect to be a multi-year arms race amongst the global miners for capacity, MARA currently has ~19.8 EH/s of hash capacity on order with scheduled deliveries through YE22, which should continue to position MARA as a dominant global BTC miner," explained the analyst.

Adding: "With MARA as an early mover (which has already contracted a lot of its infrastructure needs) and economies of scale (MARA can be an anchor customer at a data center, not just a renter) we believe MARA is well-positioned for the ongoing BTC mining up-cycle."

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