Marathon Digital Clocks 168% Bitcoin Hashrate Growth, Will MARA Stock Recover?

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As a seasoned researcher with years of experience in the cryptocurrency market, I have witnessed the rapid evolution and growth of Bitcoin miners like Marathon Digital Holdings (MARA). Last year, MARA’s 168% hashrate growth was nothing short of impressive, solidifying its position as a leader in the mining sector. This growth not only aligns with Donald Trump’s vision for America’s dominance in Bitcoin production but also overshadows the performance of top Asian players like Antpool.

However, despite this remarkable achievement, MARA’s stock performance has been less than stellar, down 17% on the year chart. This discrepancy between growth and stock price is a conundrum that I have often encountered in my research career. One could argue that investors are awaiting a strong recovery before fully committing to MARA, much like a timid squirrel hesitant to leap for the ripe apple dangling just out of reach.

The Bitcoin halving event in March 2024 took a toll on MARA’s revenue, reducing mining rewards by 50%. This industry-wide challenge has been compounded by projected losses for the quarter and full fiscal year. However, some analysts remain optimistic about MARA’s potential, viewing it as a more promising investment than MicroStrategy (MSTR) moving into 2025.

The recent $1 billion Bitcoin acquisition spree by MARA is a testament to the miner’s bullish outlook for 2025. In his latest interview, CEO Fred Thiel hinted at rising demand and potential scarcity of Bitcoin supply leading to significant price increases. While he did not specify a target price, he did emphasize the regulatory landscape’s bullish outlook for BTC.

In my experience, the cryptocurrency market is as unpredictable as a roller coaster ride on a stormy day. However, I find it amusing that even in the face of challenges, Bitcoin miners like MARA continue to invest aggressively in Bitcoin, much like a gambler doubling down on a losing hand in the hope of striking gold. After all, as Mark Twain once said, “The secret of getting ahead is getting started.” So, let’s see if 2025 brings the luck MARA is betting on!

Last year, Bitcoin mining company Marathon Digital achieved a significant milestone by increasing its Bitcoin hashrate by 168%, solidifying its role as an industry leader in BTC production. This development aligns with former President Donald Trump’s aspirations to establish America as a center for Bitcoin mining. Nevertheless, despite this impressive growth, the MARA stock has dropped by 17% over the course of the year, leaving investors hopeful for a robust rebound in the near future.

Marathon Digital Records High Bitcoin Hashrate Growth

In the year 2024, MARA Pool, run by Marathon Digital Holdings, experienced an impressive surge of 168% in its Bitcoin hashrate compared to the previous year. This remarkable increase significantly strengthened MARA Pool’s dominance within the market. Notably, this growth outpaced the 49% expansion observed across the entire Bitcoin network during the same timeframe, underscoring MARA Pool’s prominent role as a pioneer in the mining industry.

Consequently, the Bitcoin miner significantly supports Donald Trump’s aim to enhance U.S. dominance within the worldwide Bitcoin mining sector. The past year marked a significant shift in the American Bitcoin mining industry, surpassing major Asian competitors such as Antpool.

Beyond Marathon Digital, the Foundry USA Pool experienced substantial growth and widened its gap against Antpool by an impressive 100% in terms of hash rate. As per current Cloverpool data, Foundry’s hash rate increased dramatically from around 157 exahashes per second (EH/s) in January 2024 to roughly 280 EH/s by December. Conversely, Antpool’s hash rate grew only moderately, moving from 130 EH/s to 147 EH/s. This growth was overshadowed by the overall network expansion of Bitcoin, which reached 49% during this period.

What’s Behind the MARA Stock Fall

Despite Marathon Digital’s growth in market control, the MARA stock has fallen short of market predictions. By the end of 2024, the stock was 18% lower than its initial position.

In March 2024, the Bitcoin mining sector experienced a significant downturn in earnings due to the halving event, which lowered the mining rewards by half. Consequently, the Bitcoin miner saw a substantial reduction in its income, and the entire Bitcoin mining industry has felt the brunt of this change.

Based on Zacks Consensus Estimate, Marathon Digital is expected to report a quarterly loss of approximately 32 cents per share. This projected loss represents a significant year-on-year drop of around 1,500%. For the entire fiscal year, the consensus estimate predicts a loss of 29 cents per share, indicating a year-over-year decrease of approximately 271%.

In contrast, certain market analysts think MARA could prove a more advantageous choice over MicroStrategy (MSTR) as we approach 2025. The reasoning behind this is that the company has shrewdly invested in enhancing its Bitcoin mining infrastructure and solidifying its market standing.

Bitcoin Buying Spree Continues

Marathon, a Bitcoin miner, has persisted in its Bitcoin purchasing streak, acquiring close to $1 billion worth of Bitcoin last December. In a recent conversation, Fred Thiel, CEO of Marathon, expressed optimism about the future, particularly 2025, and encouraged investors to consider investing a small amount in Bitcoin on a monthly basis.

In simpler terms, Thiel expressed his high hopes for this year, stating that if major countries start investing in strategic Bitcoin reserves, it’s likely that many other nations will do the same. This implies someone needs to get these Bitcoins from existing sources because the monthly mined supply is limited and won’t be sufficient. As a result, we can expect Bitcoin prices to rise.

In a recent statement, the CEO of MARA did not provide a specific price prediction for Bitcoin, but he underscored that the regulatory environment points towards a positive trend for BTC. Peter Thiel also brought up the possibility of increased scarcity in Bitcoin supply today, suggesting that growing demand could lead to substantial price increases by 2025.

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2025-01-03 11:34