MARA Stock Prepares for 3x Rally As Marathon Digital Plans Big AI Push

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As a seasoned crypto investor with over a decade of experience in this dynamic market, I have witnessed both the exhilarating highs and crushing lows that come with investing in digital assets. The recent turbulence faced by Bitcoin miner Marathon Digital (MARA) has been no exception, with the halving this year causing a significant drop in mining rewards and an increase in mining complexity. However, I remain optimistic about MARA’s future, especially after the positive recommendation from Macquarie and the strategic moves the company is making to cater to the demands of AI.

Bitcoin mining company Marathon Digital (NASDAQ: MARA) has encountered significant challenges due to Bitcoin halving this year, which cut mining rewards in half and increased mining difficulty by a factor of two. Consequently, the MARA stock has seen a 30% decline so far this year. Nevertheless, financial experts anticipate that the potential downside for MARA stocks is minimal in the short term and could potentially triple (3x) in its recovery phase. Similar to other Bitcoin mining operations, Marathon Holdings is also concentrating on satisfying the needs of artificial intelligence using their existing infrastructure.

MARA Stock Rally to Begin Soon on Macquarie Buy Call

Robert Samuels, Vice President of Investor Relations at Marathon Digital, expressed his enthusiasm after Macquarie endorsed the purchase of Marathon Holdings’ shares.

According to Macquarie’s report, Marathon Digital remains the front-runner in the cryptocurrency mining sector. Not only does it excel at mining, but it also provides physical and digital infrastructure, such as its mining pool, miner firmware, a stake in Auradine (an ASIC manufacturer), and sophisticated two-phase liquid cooling technology.

According to Macquarie, Marathon aims to enhance its mining capabilities with a goal to reach an operational power of 50 Exahash per second (EH/s) by the year 2024. Additionally, it is focusing on establishing a robust social approval by implementing creative energy-harvesting methods in stranded gas and heat recycling projects.

Thrilled that Macquarie endorses the shares of @MARAHoldings. Based on their analysis, “Marathon remains at the summit of the sector in overall capacity, boasting an impressive 35.2 EH/s energized as of August 2024’s end. Furthermore, MARA serves both physical and digital products within the industry.

— Robert Samuels (@RobSamuelsIR) September 25, 2024

Lately, there’s been increased interest in the MARA Stock, with Canada’s Public Sector Pension Investment Board acquiring new shares. According to recent data, they have bought a total of approximately 600,518 MARA shares worth around $12 million. By the end of Q2, the Public Sector Pension Investment Board held about 0.21% of Marathon Digital.

For some time now, the share price of MARA Holdings has been fluctuating between $13 and $16 in what’s known as an accumulation range. Market experts believe that a significant surge on the upside for the MARA stock is imminent, possibly triggering a 3-fold increase if Bitcoin prices rebound to around $90,000. This prediction comes after a period where Bitcoin miners’ revenue dropped by approximately 57% following the halving event, leading to significant adjustments in the market. But it appears that those challenging times have passed!

$MARA – Marathon

Many Bitcoin miners find themselves in an area of intense compression, suggesting a significant surge upward could occur soon. However, until that happens, some price fluctuations in Bitcoin might persist.

Accumulation range: $13-16

This is VERY limited downside for the potential 2-3x that’s…

— Danny Marques | Investing Informant (@Invst_Informant) September 23, 2024

Marathon Digital Making the AI Push

During a recent interview on Bloomberg TV, Marathon Digital’s CEO, Fred Thiel, discussed their efforts to expand operations. He emphasized that this growth strategy includes the introduction of innovative technologies, specifically a two-phase immersion cooling system, which has the potential to significantly lower water usage in the AI sector.

Thiel explained that this innovative solution offers a cost-effective alternative for cooling AI infrastructure, which typically relies on large amounts of water.

On Bloomberg TV, Marvin R. Foo (MARA Chairman and CEO) outlined how MARA’s innovative two-phase immersion cooling method could economically minimize water usage in the AI sector while cooling their infrastructure. You can catch the discussion here:

— MARA (@MARAHoldings) September 25, 2024

Instead, let me rephrase that for you: In contrast, Marathon Digital has been actively purchasing Bitcoins recently. Just last month, they announced their intention to convert $250 million worth of convertible notes into Bitcoins.

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2024-09-26 10:08