Marathon Digital Holdings (MARA) AI Stock Analysis

• Market Cap: $5.70B
• Dividend Yield: N/A
• Average Volume (3M): 40.93M
• Price to Earnings (P/E): 9.6
• Beta (1Y): 2.06
• Revenue Growth: 40.57%
• EPS Growth: -152.87%
• Country: US
• Employees: 171
• Sector: Financial
• Sector Strength: 85
• Industry: Financial - Capital Markets
• EPS (TTM): -1.55
• Shares Outstanding: 351,927,730
• 10 Day Avg. Volume: 44,930,144
• 30 Day Avg. Volume: 40,925,433
• PEG Ratio: 0.11
• Price to Book (P/B): 0.92
• Price to Sales (P/S): 0.00
• P/FCF Ratio: -4.63
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: $19.50
• Price Target Upside: 19.49% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 9

Marathon Digital Holdings faces significant financial challenges, with negative cash flow and high leverage. While technical indicators show some positive momentum, the stock is nearing overbought conditions. The company's valuation appears high given its financial difficulties and lack of earnings. Mixed results from the earnings call, with strong revenue growth but significant losses, contribute to a cautious outlook.

Positive Factors

Infrastructure and energy costs

MARA successfully pivoted away from asset light to site ownership, acquiring several sites and reaching 1.7 GW of total capacity.

Strategic focus

MARA's strategic focus on self power generation and overall lower energy costs is considered a net positive.

Technology development

MARA remains focused on technology development in its core vertical of power conversion, aiming to drive energy costs to zero.

Negative Factors

Earnings impact

A non-cash, fair value negative price adjustment caused MARA's per share earnings to plummet.

Market performance

The stock has underperformed due to macro concerns about interest rates and its aggressive share issuance.

Operational challenges

MARA reported an adj. EBITDA miss resulting from higher mining costs and SG&A.

Marathon Digital Holdings Business Overview & Revenue Model

Company Description

Marathon Digital Holdings, Inc. operates as a digital asset technology company that mines cryptocurrencies with a focus on the blockchain ecosystem and the generation of digital assets in United States. As of December 31, 2021, it had approximately 8,115 bitcoins, which included the 4,794 bitcoins held in the investment fund. The company was formerly known as Marathon Patent Group, Inc. and changed its name to Marathon Digital Holdings, Inc. in February 2021. Marathon Digital Holdings, Inc. was incorporated in 2010 and is headquartered in Las Vegas, Nevada.

How the Company Makes Money

Marathon Digital Holdings makes money primarily through the mining of Bitcoin. The company earns revenue by validating Bitcoin transactions and adding them to the blockchain, for which it receives a block reward in the form of newly minted Bitcoins. Additionally, Marathon may earn transaction fees associated with the processing of transactions on the Bitcoin network. The company invests in advanced mining hardware and optimizes its operations to maximize mining efficiency and profitability. Partnerships with energy providers and mining pool operators can also play a role in its operational effectiveness, contributing to its overall earnings.

Marathon Digital Holdings Financial Statement Overview

Summary

Marathon Digital Holdings shows impressive revenue growth and improved net income, but struggles with profitability margins and cash flow management. The increased leverage poses risks, yet the strong equity base provides stability.

Income Statement

Marathon Digital Holdings has shown significant revenue growth from $1.18M in 2019 to $656.38M in 2024. However, the company struggles with profitability as evidenced by persistent negative gross profit margins, indicating costs are exceeding revenues. Despite this, there is notable improvement in net income, turning positive in recent years, which is a promising sign.

Balance Sheet

The balance sheet reflects a strong equity base with an increasing trend in stockholders' equity from $3.65M in 2019 to $4.23B in 2024. However, the debt-to-equity ratio has increased, indicating higher leverage, which could pose financial risk. The equity ratio remains healthy, suggesting a solid asset base funded by equity.

Cash Flow

Marathon Digital Holdings faces challenges in cash flow management, with consistently negative free cash flow and operating cash flow across the years. Despite improvements in financing activities, the company struggles to generate sufficient cash from operations, which could affect its ability to sustain operations without external financing.

Breakdown
Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement		Total Revenue
656.38M	387.51M	117.75M	159.16M	4.36M
	Gross Profit
-159.37M	-15.34M	-33.67M	116.77M	-7.37M
	EBIT
306.11M	220.91M	-663.87M	-12.66M	-9.83M
	EBITDA
1.06B	467.46M	-601.78M	11.63M	-7.26M
	Net Income Common Stockholders
541.25M	261.17M	-686.74M	-37.10M	-10.52M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
391.77M	357.31M	103.70M	492.30M	141.32M
	Total Assets
6.80B	1.99B	1.20B	1.45B	313.25M
	Total Debt
2.47B	326.13M	783.51M	728.41M	184.10K
	Net Debt
2.08B	-31.18M	679.81M	459.88M	-141.14M
	Total Liabilities
2.67B	375.05M	809.30M	765.22M	1.51M
	Stockholders Equity
4.23B	1.62B	385.94M	683.02M	311.74M
Cash Flow		Free Cash Flow
-930.48M	-343.26M	-217.59M	-727.14M	-91.16M
	Operating Cash Flow
-677.02M	-315.65M	-176.48M	-18.22M	-7.77M
	Investing Cash Flow
-596.41M	4.59M	-390.23M	-891.92M	-81.29M
	Financing Cash Flow
3.95B	555.86M	410.65M	1.04B	229.69M

Marathon Digital Holdings Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 16.32
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For MARA, the sentiment is Positive. The current price of 16.32 is above the 20-day moving average (MA) of 14.63, above the 50-day MA of 13.37, and below the 200-day MA of 16.97, indicating a neutral trend. The MACD of 0.80 indicates Negative momentum. The RSI at 63.58 is Neutral, neither overbought nor oversold. The STOCH value of 84.38 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for MARA.

Marathon Digital Holdings Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
IREN	65 Neutral	$1.88B	―	-3.39%	―	―	―
FUFU	65 Neutral	$606.76M	11.24	56.54%	―	―	96.50%
Sector *	64 Neutral	$12.82B	9.83	7.68%	17000.34%	12.38%	-5.56%
BTBT	63 Neutral	$494.52M	8.82	-23.29%	―	53.68%	-265.12%
CIFR	55 Neutral	$1.43B	―	-18.49%	―	-0.65%	-808.88%
WULF	54 Neutral	$1.50B	―	-56.12%	―	31.85%	-34.27%
MARA	50 Neutral	$5.70B	9.58	-10.61%	―	40.57%	-152.87%

Marathon Digital Holdings Corporate Events

Marathon Digital’s New $2 Billion Stock Offering

On March 28, 2025, Marathon Digital Holdings entered into an At The Market Offering Agreement with several financial agents to sell up to $2 billion of its common stock. This new agreement replaces a previous one from October 2023, which allowed for the sale of up to $1.5 billion in stock, marking a strategic move to potentially increase capital through the market.

Marathon Digital Updates Equity Incentive Plan Awards

On February 28, 2024, Marathon Digital Holdings’ Talent, Culture and Compensation Committee approved new award agreements for restricted stock units (RSUs) and performance-based RSUs (PSUs) under the company’s Amended and Restated 2018 Equity Incentive Plan. The RSUs will have a new vesting schedule, with 30% vesting immediately and 70% vesting over three years. The PSUs will include both performance-based and time-based vesting conditions, with performance targets such as Hashrate Hours, Total Exahash, and Megawatts, and a maximum payout of 249% of the target shares. In the event of a Change in Control, unvested PSUs will be treated similarly to RSUs with performance conditions deemed achieved at target level.