Jefferies Says Marathon Digital Has Near 160% Upside Potential, Initiates Coverage

Marathon Digital (MARA) is on pace to become the largest publicly listed bitcoin miner this year, Jefferies said in a note on Friday.

  • The bank’s analyst also started coverage with a 12-month price target of $51, implying a 158% increase from recent close.
  • MARA is on track to be the largest publicly-traded miner by the end of 2022, with deposits paid on more BTC ASIC miners than any of its peers,” analyst Jonathan Petersen wrote.
  • Marathon is highly profitable despite the recent selloff as the company’s mining margin is around 80%, compared to about 90% in November, according to the note.
  • We estimate that BTC will rise at a +32% CAGR through ’24 and that MARA’s revenue and EBITDA will rise at a +120% and +95% CAGR, respectively, Petersen said.
  • The stock has been initiated with a buy rating by Jefferies.
  • On Dec. 29, Marathon Digital said it expects to have 199,000 operational miners generating 23.3 exahashes per second by early 2023.
  • Marathon’s stock fell about 74% since reaching its November peak, according to TradingView data, as the crypto miners tumbled with sharp selloff in bitcoin and broader crypto market.

Read more: Miners Remain Unfazed by Crypto Sell-Off, Expect More M&A

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