Jul 17, 20238 min read

Marathon Digital Holdings (MARA) 30-Day Stock Forecast Yields 93.68% Profit

On June 15th Marathon Digital Holdings (MARA) was the number 8th stock pick our AI analytics suggested to subscribers to research over the 30-day time horizon.

Our AI-driven stock prediction system conducts an in-depth analysis of historical financial market anomalies attributed to trader overreaction and underreaction, generating daily forecasts in various timeframes. The AI-generated signal is a numerical representation of the predicted trend and is utilized by traders to identify optimal entry and exit points in the market. We issued a bullish stock forecast for Marathon Digital Holdings, Inc. (MARA), a blockchain technology business that engages in the cryptocurrency mining sector, on June 15th, 2023, and generated an impressive 93.68% ROI in the 30-day forecast. The stock MARA was ranked number 8 in our Top 10 forecast. The average return of the Top 10 on June 15th was 19.46% versus the S&P 500 return of only 2.97% over the same time horizon. The corporation runs mining sites across North America from its headquarters in Las Vegas, Nevada. It is a dominant force in the Bitcoin mining sector. The company emphasizes Bitcoin mining in a sustainable and ecologically responsible way because it is an environmentally concerned business. The corporation has put in place a green energy policy and is dedicated to powering its mining operations with renewable energy sources like hydroelectric, wind, and solar electricity. In addition to lowering the company's carbon footprint, this also lowers energy expenses.

The company's business plan, in addition to mining Bitcoin, centers on selling the cryptocurrencies it has mined with cutting-edge technology, making money from the sale of extracted coins, and participating in the creation and marketing of blockchain software. Retail and institutional investors who invest in Bitcoin and other cryptocurrencies are among its clients. The fluctuating cryptocurrency market is one of the specific issues that MARA addresses. The profitability of MARA's mining activities can be affected by the rapidly fluctuating price of Bitcoin and other cryptocurrencies. The business has taken action to address this problem by investing in top-notch mining equipment and streamlining its operations to minimize expenses and increase profitability.

While Marathon's financial performance in 2022 was impacted by unfavorable variances compared to the prior year, the company has taken proactive measures to strengthen its balance sheet and pursue alternative banking relationships. The company's primary goals for 2023 are to energize previously purchased mining rigs and optimize performance to become more effective and efficient. Marathon is poised to become one of the largest, most resilient, and sustainably operated Bitcoin miners in North America. The company exhibited promising financial and operational results in the first quarter of 2023. Despite recording a net loss, Marathon showed improvement compared to the prior-year period. The company's revenues were slightly lower due to decreased Bitcoin prices, although the substantial increase in Bitcoin production and gains from the sale of Bitcoin partly offset these effects. Marathon's adjusted EBITDA showed remarkable growth, benefiting from the aforementioned factors.

In terms of operations, Marathon demonstrated impressive year-over-year and quarter-over-quarter growth in Bitcoin production and hash rate. The record-breaking production of 2,195 Bitcoin, coupled with the significant increase in hash rate, positions Marathon as a key player in the Bitcoin mining industry.

Fred Thiel's management commentary underscored Marathon's achievements during the quarter, including the growth of the hash rate, improvements in financial position, and strategic steps to strengthen the balance sheet. Thiel's optimism about reaching its hash rate goal and establishing Marathon as a leading Bitcoin mining operation further reinforces the company's commitment to long-term growth.

While Marathon's financial success is intertwined with Bitcoin prices and market dynamics, its continued focus on operational expansion and strategic financial management positions the company to capitalize on future opportunities in the Bitcoin ecosystem. Investors and industry observers will be closely watching Marathon's progress as it seeks to solidify its position as a prominent player in the ever-evolving world of Bitcoin mining.

AI-Powered Predictive Analytics: MARA

The ability of the artificial intelligence stock prediction program from growthtech.ai to unbiasedly analyze a wide number of assets throughout the day is one of the key benefits of utilizing it for stock analysis. Big data analytics can help us improve decision-making, forecasting, outcome modeling, and market comprehension by working together with our AI prediction system.

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In the image below, you can see the AI-powered signals for MARA for the 30-day stock projection from June 15th until July 14th, 2023 resulting in a huge 93.68% profit. For reference, you would initially see the top-rated stock recommendations by ranking for each future time projection. However, for the purposes of this article, we filtered the software to only show the stock prediction for MARA. There are several filters that you can use to help you with your analysis.

Marathon Digital Holdings (MARA) Stock Forecast

In addition to providing stock recommendations based on artificial intelligence, the growthtech.ai analytics also provides you with Signal Confidence (SC), which may be used to determine the possibility that a stock prediction would be accurate. The Signal Confidence (SC) for this stock forecast is 65%. The Signal Confidence (SC), expressed as a percentage out of 100% by the AI system, is determined by computations that balance the historical accuracy of each previous financial asset projection with current market factors crucial to stock price.

The use of AI in trading has significantly increased efficiency in the investment process and has given traders access to new insights, improving their decision-making abilities. With the proliferation of big data and technological advancements in AI, the accuracy and reliability of these models have improved significantly. As a result, many investors are turning to AI-based trading systems to supplement traditional market research methods. Our AI analytics dashboard also includes advanced charting with every technical indicator available and fundamental market research tools to aid investors' stock research.

However, it is essential to note that these systems still require proper human oversight to

prevent errors or system failures, meaning that your own due diligence is still required. These

signals should not be used as your sole discretionary decision-making factor, but as an effective tool to drastically reduce the time it takes for you to find new market opportunities. So for example, here the AI is suggesting MARA, and now you would do your own due diligence to come to your own conclusions based on your own personal considerations.

MARA First Quarter Financials Review

Marathon reported a net loss of $(7.2) million, or $(0.05) per share, for the first quarter of 2023. This represents an improvement compared to the net loss of $(12.9) million, or $(0.12) per share, recorded in the prior-year period ended March 31, 2022. Although still incurring losses, Marathon's efforts in reducing its net loss year over year indicate progress in its financial performance.

Revenues for the first quarter were $51.1 million, slightly lower than the previous year's revenues of $51.7 million. The decrease in revenues can be attributed to lower Bitcoin prices during the current year period, which overshadowed a notable 74% increase in Bitcoin production. Despite the lower revenues, Marathon recorded gains of $17.6 million from the sale of Bitcoin. This gain was a result of Marathon's strategy to sell Bitcoin to fund its operating costs. Furthermore, the company experienced lower impairments in the carrying value of its digital assets, amounting to $11.5 million, as Bitcoin prices generally rose during the first quarter of 2023. Additionally, Marathon benefited from the absence of a $5.3 million unrealized loss on digital assets it held in an investment fund in the prior year. However, these favorable earnings variances were partially offset by a decrease in the total margin of $25.3 million, primarily due to the lower Bitcoin prices. Furthermore, an increased tax expense of $4.3 million resulted from the establishment of a valuation allowance at the end of 2022.

Marathon's adjusted EBITDA (Earnings Before Interest, Taxes, Depreciation, and Amortization) for the first quarter of 2023 amounted to $18.6 million, representing a significant improvement compared to $9.8 million in the prior year period. The increase in adjusted EBITDA was primarily driven by the gain on the sale of Bitcoin, lower impairment charges, and the absence of an unrealized loss. However, these positive factors were partially offset by a decrease in the margin (excluding depreciation and amortization) of $21.5 million.

Operational Highlights: Year-Over-Year Comparison:

During the first quarter of 2023, Marathon achieved notable production milestones. Let's examine the year-over-year and quarter-over-quarter comparisons to gain a comprehensive understanding of their performance.

BTC Produced: Marathon produced 2,195 Bitcoin in the first quarter of 2023, a substantial 74% increase from the 1,259 Bitcoin produced in the same period of the previous year.

Average BTC Produced per Day: The average daily production of Bitcoin during the first quarter of 2023 stood at 24.4, showing a remarkable 74% increase compared to the 14.0 Bitcoin produced per day in the first quarter of 2022.

Operational/Energized Hash Rate (EH/s): Marathon's operational hash rate witnessed significant growth, soaring to 11.5 exahashes per second (EH/s) in the first quarter of 2023, marking a staggering 195% increase from the 3.9 EH/s recorded in the same period last year.

Prior Quarter Comparison:

BTC Produced: In comparison to the previous quarter, Marathon's Bitcoin production remained stable at 2,195 Bitcoin during the first quarter of 2023.
Average BTC Produced per Day: The average daily production of Bitcoin in the first quarter of 2023 was consistent with the production in the prior quarter, standing at 24.4 Bitcoin per day.
Operational/Energized Hash Rate (EH/s): Marathon continued its upward trajectory by growing its operational hash rate from 7.0 EH/s in the fourth quarter of 2022 to 11.5 EH/s in the first quarter of 2023, representing a notable 64% increase.

Management Commentary:

Fred Thiel, Marathon's chairman, and CEO, provided insightful commentary on the company's performance and future prospects. Thiel acknowledged the challenges faced by the entire industry in 2022 but expressed optimism about Marathon's strong start in 2023. Highlighting their accomplishments, he stated that Marathon had successfully increased its energized hash rate by 64%, growing from 7.0 EH/s to 11.5 EH/s in the first quarter. This increase in hash rate, coupled with improved uptime, led to a significant rise in Bitcoin production, reaching a record-breaking 2,195 Bitcoin, reflecting a remarkable 74% year-over-year increase. Thiel also highlighted the company's improved financial position during the quarter. Marathon increased its cash position by $12 million, reduced its debt by $50 million, and added 3,132 Bitcoin to its unrestricted holdings after prepaying its term loan and terminating credit facilities with Silvergate Bank. As of March 31, 2023, Marathon possessed approximately $124.9 million in unrestricted cash and cash equivalents and 11,466 Bitcoin, valued at approximately $326.5 million.

Looking ahead, Thiel emphasized Marathon's focus on further expanding its hash rate. The company remains on track to achieve its goal of reaching 23 EH/s by the middle of this year. Thiel expressed confidence in their ability to attain primary growth targets and establish Marathon as one of the largest, most energy-efficient, and technologically advanced Bitcoin mining operations globally.