Marathon Digital Holdings, Inc.

Marathon Digital Holdings, Inc. (NASDAQ: MARA) is a cryptocurrency mining company that focuses on the blockchain ecosystem and digital asset generation. It is a part of the Digital Currency Blockchain industry. With a power capacity of approximately 105 megawatts, the Company operates a Data Center in Hardin, Montana, United States.

Key Highlights

• The company reported YoY growth of 3353.03% in net revenues to USD 150.46 million in FY21 (ended December 31, 2021) compared to USD 4.36 million in FY20.
• MARA net loss increased to USD 36.17 million during FY21 vs. USD 10.45 million in FY20.
• As of December 31, 2021, the company had cash and cash equivalents of USD 595.11 million and total debt of USD 728.41 million.
• MARA's FY21 cash cycle of 127 days is significantly higher than the industry median of 35 days.
• Its ROE was -7.3% in FY21 vs. the industry median of -4.7%.
• On February 8, 2022, MARA announced that Raymond Walintukan had been named vice president of mining operations. Walintukan, who will report to COO Jim Crawford and be in charge of the Company's mining operations and strategy, is a non-executive officer.
• Stock is currently trading between its crucial short-term (50-day) and long-term (200-day) SMA support levels.
• The stock is leaning towards the lower end of its 52-week range of USD 18.32 to USD 83.45.
• MARA's stock price decreased 7.81% and 35.85% in the past nine and twelve months, respectively.

Conclusion: Considering the surge in topline, long-term profitability issues, technical indicators, and associated risks, we recommend a "Watch" rating on the stock at the closing price of USD 26.66, up 9.78%, as of March 17, 2022.

Technical Price Chart (as of March 17, 2022). Source: REFINITIV, Analysis by Kalkine Group

Technical Analysis Summary:

Investors can evaluate the stock based on the support and resistance levels provided in the report in case of keen interest taking into consideration the risk-reward scenario.

Technical Indicators Defined: -

Support: A level where-in the stock prices tend to find support if they are falling, and downtrend may take a pause backed by demand or buying interest.

Resistance: A level where-in the stock prices tend to find resistance when they are rising, and uptrend may take a pause due to profit booking or selling interest.

Stop-loss: It is a level to protect further losses in case of unfavourable movement in the stock prices.

Note 1: The reference data in this report has been partly sourced from REFINITIV.  

Note 2: Investment decision should be made depending on the investors' appetite on upside potential, risks, holding duration, and any previous holdings. Investors can consider exiting from the stock if the Target Price mentioned as per the valuation has been achieved and subject to the factors discussed above.