MARA Stock Analysis: Why Marathon Digital May Be a Better Bitcoin Bet


  • Some people might choose to own a spot Bitcoin exchange-traded fund instead of Marathon Digital (MARA) stock.
  • However, Marathon Digital is a profitable business that deserves investors’ attention.
  • Our MARA stock analysis calls for higher prices, and investors should consider buying it.
MARA stock analysis - MARA Stock Analysis: Why Marathon Digital May Be a Better Bitcoin Bet

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Some traders might have overlooked Marathon Digital (NASDAQ:MARA) recently because of the buzz surrounding spot Bitcoin (BTC-USD) exchange-traded funds. However, our MARA stock analysis is bullish and cryptocurrency enthusiasts should conduct their due diligence on Marathon Digital.

You’d be hard-pressed to find a more active Bitcoin miner than Marathon Digital. Furthermore, Marathon Digital has a profitable profile, so this isn’t some fly-by-night operation. Overall, Marathon Digital stock earns an “A” grade and, for some investors, could be an appropriate alternative to Bitcoin ETFs.

Bitcoin’s Massive Market Cap

When The Wall Street Journal is talking about cryptocurrency, it must be big news. And indeed, it’s a big deal that Bitcoin’s market capitalization recently surpassed the $1 trillion threshold.

As you’ve surely figured out by now, the approval of spot Bitcoin ETFs has spurred large-scale investments into the crypto space and helped to catalyze the Bitcoin price. This doesn’t mean you have to pour your investable capital into these ETFs, however.

As Bitcoin’s market cap swells, you might not want to buy a financial product that probably charges a fee (typically called an “expense ratio”). You may prefer to own an asset that moves faster than Bitcoin but generally in the same direction.

MARA stock fits the bill handily. For the foreseeable future, as long as the cryptocurrency space grows, there will be a need for Bitcoin miners. So now, let’s talk about Marathon Digital’s mining activity, which should impress even the most discerning cryptocurrency investors.

Marathon Digital Is Active and Income-Positive

First and foremost, we should mention that Marathon Digital posted a profit in its most recently reported quarter. Specifically, the company disclosed net income of $64.1 million in the third quarter of 2023.

That same quarter, Wall Street expected Marathon Digital to report an earnings loss of 11 cents per share. Yet, the company actually had income – not a loss – of 38 cents per share in Q3 2023.

On an operational level, Marathon Digital is also demonstrating that it’s an active and legitimate business. In December of last year, Marathon Digital produced 1,853 Bitcoin, up 290% year over year.

Then, in January of this year, Marathon Digital produced 1,084 Bitcoin, up 58% YOY. Granted, every month will involve different circumstances and varying production numbers. Marathon Digital’s growth as a premier Bitcoin producer is undeniable.

MARA Stock Analysis: A Great Way to Boost Your Crypto Exposure

Marathon Digital stock is up substantially over the past year. Meanwhile, the approved spot Bitcoin ETFs are still new, but it’s safe to assume that they will perform approximately the same as Bitcoin, minus any fees.

Our MARA stock analysis suggests that greater gains could come when compared to just holding Bitcoin ETFs. Of course, greater potential rewards will involve a certain measure of risk, so keep proper position sizing in mind. Still, since Marathon Digital is highly active and was income-positive in 2023’s third quarter, we’re assigning the stock an “A” grade today.

On the date of publication, neither Louis Navellier nor the InvestorPlace Research Staff member primarily responsible for this article held (either directly or indirectly) any positions in the securities mentioned in this article.

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