On Tuesday, JPMorgan made a notable adjustment to its stance on Marathon Digital Holdings (NASDAQ:MARA), shifting the rating from Underweight to Neutral. Accompanying this upgrade was a significant increase in the price target, set at $23.00, a substantial rise from the previous $12.00.
The stock has demonstrated strong momentum, posting a 42% return over the past year and currently trading near $24, according to InvestingPro data. With 17 additional real-time insights available on InvestingPro, investors can access comprehensive analysis of MARA's performance metrics and growth potential.
The revision by the analyst at JPMorgan reflects a recognition of Marathon Digital's substantial expansion in self-mining capacity over the past approximately 12 months. The company has acquired around 800 megawatts (MW) of self-mining capacity, positioning it just behind Riot in terms of owned Active power capacity.
This strategic growth has been acknowledged as a positive move for the company's mining economics, reflected in the company's impressive 131% revenue growth over the last twelve months.
According to the analyst, Marathon Digital's shares are considered expensive when evaluated on an exahash per second (EH/s) and MW basis. However, the current market pricing is deemed appropriate. The analyst's perspective suggests that investors are willing to pay a premium for companies that have bitcoin on their balance sheets.
Marathon Digital's holding of 35,000 BTC is noted as the largest within the coverage universe of the analyst, further justifying the adjusted price target and neutral rating. InvestingPro's Fair Value assessment aligns with this view, indicating the stock is currently fairly valued. Subscribers can access the comprehensive Pro Research Report for deeper insights into MARA's valuation metrics and growth prospects.
The upgrade and new price target reflect the company's recent advancements and the market's valuation of its bitcoin holdings. Marathon Digital's progress in enhancing its mining operations and its significant bitcoin assets have influenced JPMorgan's updated outlook on the stock.
In other recent news, Bitcoin's surge past the $100,000 mark has positively impacted various companies with exposure to cryptocurrency, including MARA Holdings and Marathon Digital Holdings.
This surge follows President-elect Donald Trump's appointment of Paul Atkins as the new Chair of the Securities and Exchange Commission (SEC), a move seen as favorable for the crypto industry.
MARA Holdings recently closed an $850 million private offering of convertible senior notes, with net proceeds of approximately $835.1 million earmarked for various corporate purposes. The company also successfully closed a $1 billion senior convertible notes offering, indicating strong institutional interest in Bitcoin exposure.
Marathon Digital Holdings, on the other hand, has been recognized for its significant exahash rate, making it a compelling option for investors interested in Bitcoin mining. The company has also been expanding its operations, recently adding approximately 372MW across three sites in Ohio.
Analyst firms like Barclays (LON:BARC) and Compass Point have issued an Equal Weight rating and adjusted their stance from Buy to Neutral respectively for Marathon Digital. Barclays set a price target of $27.00, while Compass Point increased its price target to $25.00.
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