MARA Holdings Acquires 64% Stake in EDF’s Exaion for HPC Expansion
MARA Holdings (MARA) announced it will acquire a 64% stake in Exaion, a high-performance computing (HPC) subsidiary of EDF. This marks a shift from its bitcoin (BTC) mining focus.
Key points:
- The acquisition aims to capitalize on the demand for HPC and artificial intelligence (AI), which are expected to provide higher margins than mining.
- Analyst Kevin Dede anticipates MARA's previous strategy of aiding power companies will remain tied to mining rather than fully transitioning to HPC.
- Other bitcoin mining firms, like Core Scientific (CORZ), have also moved towards AI and HPC ventures recently.
- MARA's entry into HPC enhances its credibility and positions it in sovereign cloud AI services, which require advanced networking and computational skills.
- H.C. Wainwright maintains a buy rating on MARA with a price target of $28; shares were at $15.76 during publication.
- Despite recent gains due to bitcoin's performance and ETF inflows, risks include BTC price volatility and operational challenges in data center expansion.