Financial Performance - MARA Holdings, Inc. reported record-high revenue, net income, and adjusted EBITDA for the full year and Q4 2024 [1] - The direct energy cost per bitcoin for 2024 from owned sites is $28.8K [1] - The BTC yield per share for 2024 is 62.9% [1] Investor Communication - Investors can access the fourth quarter 2024 shareholder letter on MARA's website [2] - A copy of the shareholder letter will be submitted to the Securities and Exchange Commission on a Form 8-K [2] Conference Call Details - MARA will hold a webcast and conference call on February 26, 2025, at 5:00 p.m. Eastern Time [3][4] - Registration for the conference call is available through a provided link [4]

Core Viewpoint - Marathon Digital Holdings, Inc. (MARA) is expected to report a loss of 32 cents per share for Q4 2024, a decline from a loss of 2 cents in the same quarter last year, with revenues projected at $191 million, reflecting a 21.8% year-over-year growth [1][2]. Earnings Estimates - No upward revisions have been made to the earnings estimates for the upcoming quarter in the past 30 days, with one downward revision noted, worsening the consensus estimate from a projected loss of 30 cents to 32 cents [2]. - The earnings surprise history shows that MARA has surpassed the Zacks Consensus Estimate in three of the past four quarters, with an average negative surprise of 136.1% [4][5]. Earnings ESP and Zacks Rank - MARA has an Earnings ESP of -57.48% and holds a Zacks Rank of 3 (Hold), indicating a lesser chance of an earnings beat this time [6][7]. Revenue Generation Strategy - The company's revenue in the upcoming quarter is likely to benefit from its dual approach to Bitcoin mining, which combines revenue generation with strategic asset accumulation, allowing for lower-cost Bitcoin production [8]. - MARA retains a significant portion of the Bitcoin it mines, positioning itself for potential price appreciation over time [9]. Stock Performance - Over the past three months, MARA's stock has declined by 39%, contrasting with a 39% rally in the industry, while competitors like Riot Platforms, Inc. (RIOT) and HuT 8 Corp. (HUT) saw declines of 6% and 25%, respectively [10]. Investment Considerations - MARA is viewed as a cautious hold amid mixed performance, with strategic expansion in mining capacity and cost-effective acquisitions supporting long-term growth, although near-term profitability remains challenging [14].

Core Viewpoint - Strategy (formerly MicroStrategy) has significantly outperformed MARA Holdings (formerly Marathon Digital) over the past year, with Strategy's stock rising over 370% while MARA's stock fell nearly 35% despite Bitcoin's price rallying nearly 90% during the same period [2]. Group 1: Company Overview - Strategy is the world's largest corporate holder of Bitcoin, having accumulated 450,000 Bitcoins worth approximately $97 billion, purchased at an average price of $62,691, totaling about $28.2 billion [4]. - MARA is the world's largest Bitcoin miner, with a hash rate of 53.2 exahash per second (EH/s) and an average production of 24.2 Bitcoins per day [6]. Group 2: Financial Performance - Strategy's core software business is experiencing minimal growth, primarily generating cash to fund Bitcoin purchases, while also increasing debt and issuing shares [5]. - MARA holds 44,893 Bitcoins valued at $4.3 billion, representing 72% of its enterprise value of $6 billion [7]. Group 3: Competitive Advantages - Strategy has a key advantage as it does not incur energy costs to acquire Bitcoin, converting cash from its software business and financing activities into Bitcoin [8]. - MARA faces rising energy costs and increased operating expenses due to its mining operations, which will be exacerbated by the Bitcoin halving events [9]. Group 4: Investment Outlook - If Bitcoin's price is expected to rise, Strategy is viewed as a more favorable investment compared to MARA, which requires declining energy costs and economies of scale to remain competitive [11].

Core Viewpoint - Marathon Digital Holdings, Inc. (MARA) has experienced a 15% decline in stock price over the past three months, contrasting with a 29% rally in the bitcoin-mining industry, indicating potential challenges for the company [1] Company Performance - MARA's competitors, such as Riot Platforms, Inc. (RIOT) and HuT 8 Corp. (HUT), have shown varying performance, with HUT dropping 19% during the same period [1] - The company is currently assessing whether its stock levels present an attractive entry point for investors [2] Market Sentiment - The recent election victory of Donald Trump is believed to potentially boost the crypto market and MARA, driven by optimism regarding pro-digital asset policies [3] - Trump's previous support for deregulation in financial markets has raised hopes for a more favorable regulatory environment for cryptocurrency companies [4] Operational Expansion - MARA has increased its interconnect-approved capacity by 372 MW across three Ohio data centers, aiming for sustained mining expansion [5] - The company acquired facilities at a cost of $270,000 per MW, significantly lower than the industry average of $900,000 to $1.5 million per MW, enhancing its operational efficiency [5] - A new greenfield facility in Ohio is expected to add 150 MW of capacity, further supporting growth and reducing reliance on third-party providers [6] Strategic Approach - MARA employs a dual strategy in Bitcoin mining, focusing on revenue generation while accumulating strategic assets [9] - The company retains a significant portion of mined Bitcoin, positioning itself for potential price appreciation [10] Financial Position - MARA maintains a strong liquidity position with a current ratio of 4, well above the industry average of 2.21, indicating good capability to meet obligations [11] - The Zacks Consensus Estimate projects MARA's 2024 revenues at $633 million, reflecting a 63.4% increase year-over-year, with a further 50% growth expected in 2025 [13] Profitability Outlook - Despite strong revenue growth prospects, MARA is expected to report a loss of 24 cents per share in 2024, compared to earnings of 17 cents in 2023, indicating profitability challenges [14] - Losses are projected to increase to around 56 cents per share in 2025, suggesting ongoing pressure on the bottom line [14] Investment Strategy - MARA's strategic expansion and potential for a crypto-friendly regulatory environment may provide a favorable backdrop for long-term growth [17] - The company's balanced approach of immediate income generation and strategic asset accumulation, along with strong liquidity, suggests a cautious hold for investors while awaiting operational improvements [17]

Company Performance - Marathon Digital Holdings, Inc. closed at $16.24, reflecting a +1.37% change from the previous day, outperforming the S&P 500 which fell by 0.27% [1] - Over the past month, shares of the company have decreased by 7.72%, while the Business Services sector gained 13.4% and the S&P 500 increased by 4.27% [1] Earnings Projections - The upcoming EPS for Marathon Digital Holdings, Inc. is projected at -$0.32, indicating a significant 1500% decline compared to the same quarter last year [2] - The Zacks Consensus Estimate for revenue is expected to be $188.07 million, representing a 19.97% increase from the previous year [2] Analyst Estimates - Recent modifications to analyst estimates for Marathon Digital Holdings, Inc. are crucial as they reflect changing near-term business trends, with positive changes indicating analyst optimism [3] - The Zacks Rank system, which incorporates these estimate changes, provides actionable ratings, with stocks rated 1 delivering an average annual return of +25% since 1988 [4][5] Industry Context - The Technology Services industry, part of the Business Services sector, currently holds a Zacks Industry Rank of 82, placing it in the top 33% of over 250 industries [6] - The Zacks Industry Rank measures the strength of industry groups, with the top 50% rated industries outperforming the bottom half by a factor of 2 to 1 [6]

Core Points - MARA Holdings, Inc. will hold a webcast and conference call on February 26, 2025, at 5:00 p.m. ET to discuss its financial results for Q4 and the fiscal year ended December 31, 2024 [1] - Financial results will be published in a shareholder letter prior to the call and will be available on the investor relations section of the company's website [1] - Verified retail and institutional shareholders can submit and upvote questions ahead of the earnings call, with the Q&A platform opening on February 19 and closing on February 25 [3] Company Overview - MARA is a global leader in digital asset compute, focusing on developing and deploying innovative technologies to support energy transformation and sustainability [5] - The company converts clean, stranded, or underutilized energy into economic value while securing the world's blockchain ledger [5]

Core Points - MARA Holdings, Inc. has postponed its Special Meeting of Stockholders to February 19, 2025, to allow for broader participation [1][2] - The record date for the Special Meeting remains January 17, 2025, and stockholders who have already voted do not need to take further action [1][2] - The Company's Board of Directors recommends voting FOR the proposals in the proxy statement [2] Company Overview - MARA is a global leader in digital asset compute, focusing on innovative technologies to support energy transformation and sustainability [4] - The company converts clean, stranded, or underutilized energy into economic value, securing a prominent blockchain ledger [4]

Core Insights - The company reported a 12% month-over-month decline in blocks won in January 2025, totaling 218 blocks compared to 249 in December 2024 [1][2][4] - The total Bitcoin (BTC) produced in January was 750 BTC, reflecting a 13% decrease from 865 BTC in the previous month [4][6] - The company increased its BTC holdings to 45,659 BTC, indicating a strategic accumulation of assets [1] Operational Highlights - The average BTC produced per day decreased by 13%, from 27.9 BTC in December to 24.2 BTC in January [4] - The energized hash rate remained stable at 53.2 EH/s, with no new miners brought online during January [4][6] - The share of available miner rewards dropped to 5.1% from 5.9%, while transaction fees as a percentage of total rewards decreased from 2.7% to 1.6% [4][6] Strategic Focus - The company is focused on optimizing its mining fleet and implementing strategic enhancements to improve long-term efficiency and performance [3][4] - Successful conversion of over 230 containers to immersion cooling at the Texas site has led to high uptime and increased hashrate without additional power consumption [3] - Plans for 2025 include expanding mining capacity and prioritizing near net zero cost energy solutions [4]

Core Insights - MARA reported a 12% month-over-month decline in the number of blocks won in January 2025, totaling 218 blocks compared to 249 in December 2024 [3][5] - The company increased its Bitcoin holdings to 45,659 BTC, indicating a strategic focus on accumulating digital assets [1][2] Operational Highlights - The BTC produced in January 2025 was 750, down 13% from 865 in December 2024, with an average daily production of 24.2 BTC, also a 13% decrease [5] - The share of available miner rewards decreased to 5.1% from 5.9%, while transaction fees as a percentage of total rewards fell from 2.7% to 1.6% [5] - The energized hash rate remained stable at 53.2 EH/s, unchanged from the previous month [5] Management Strategy - The company is focused on optimizing its mining fleet and implementing strategic enhancements to improve long-term efficiency and performance [4] - Significant upgrades include the conversion of over 230 containers to immersion cooling at the Wolf Hollow site, which is expected to enhance efficiency without increasing power consumption [4] - MARA aims to expand its mining capacity in 2025, prioritizing near net zero cost energy solutions [5]

Join The Pragmatic Investor to stay ahead of the latest news and trends in the crypto space. Here's what you will get with your subscription:Marathon Holdings (NASDAQ: MARA ) is one of the largest publicly traded crypto miners and despite the substantial Bitcoin ( BTC-USD ) rally, the stock has been moving sideways in the last year.The Pragmatic Investor covers global macro, international equities, commodities, tech and cryptocurrencies and is designed to guide investors of all levels in their journey. Feat ...