On Friday, B.Riley raised the price target on Marathon Digital Holdings (NASDAQ:MARA) shares to $20.00 from $18.00, while maintaining a Neutral rating on the stock. The adjustment follows the company's announcement of its June production data and operational updates.
Marathon Digital reported a slight month-over-month decrease in Bitcoin production, with a total of 590 BTC mined in June, marking a 4% decline from the previous month.
Despite this decrease, the company has made significant progress in its mining operations. According to B.Riley's estimates, Marathon Digital operated at a 77% utilization rate in June.
The company also announced the energization of approximately 13,000 new miners, adding 2 exahash per second (EH/s) to its capabilities. This expansion brings Marathon Digital's operating fleet to around 250,000 Application-Specific Integrated Circuit (ASIC) miners, collectively capable of producing 31.5 EH/s.
Looking ahead, Marathon Digital remains on course to achieve its ambitious goal of reaching a hash rate capacity of 50 EH/s by the end of 2024. As of June 30, 2024, the company reported a robust combined balance of unrestricted cash, cash equivalents, and Bitcoin, totaling approximately $1,430 million. This financial position underscores Marathon Digital's continued growth and operational scaling in the cryptocurrency mining industry.
InvestingPro Insights
As Marathon Digital Holdings (NASDAQ:MARA) aims to hit its target hash rate capacity by the end of 2024, the company's financial health and market performance become increasingly relevant to investors. According to InvestingPro data, Marathon Digital boasts a market capitalization of $5.19 billion, with a notable revenue growth of 328.1% in the last twelve months as of Q1 2024. This exceptional growth is complemented by the company's strong operating income margin, which stands at an impressive 100.86% for the same period.
InvestingPro Tips suggest that while Marathon Digital's stock price movements are quite volatile, the company has managed to produce a strong return over the last three months, with an 18.06% price total return. Moreover, analysts predict that the company will be profitable this year, which is reflected in the adjusted P/E ratio of 12.19. With liquid assets exceeding short-term obligations, Marathon Digital appears to be in a good position to manage its moderate level of debt and continue its expansion in the mining operations.
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