Investing.com -- Barclays initiated coverage of Marathon Digital Holdings Inc (NASDAQ:MARA) with an "equal weight" rating and a price target of $27, calling the company one of the largest and most efficient Bitcoin miners in the industry.
Analysts highlighted Marathon's strategic shift from a 100% hosted model to owning its mining facilities outright, which they said improves its positioning relative to competitors. Analysts also pointed out the potential for revenue diversification, though noted this was still in its infancy.
“We see the company as increasingly well positioned relative to mining competitors and like the well-timed diversification away from a 100% hosted strategy, toward owning more mining facilities outright,” Barclays (LON:BARC) said in a note.
However, Barclays flagged concerns about the broader Bitcoin mining sector, citing capital intensity, earnings volatility, and the effects of Bitcoin's quadrennial halving events.
Barclays also noted that miners' stock performance tends to lag behind Bitcoin's price gains, making them a less attractive way to invest in the cryptocurrency theme.
Brokerage warned that as more Bitcoin-linked financial assets become available, miners could face increased competition for investor interest.
It said Marathon has been both stockpiling mined Bitcoin as well as it was raising capital for the purpose of acquiring Bitcoin to save.
“If you are looking to invest in a Bitcoin miner, we believe MARA is a very compelling choice”