MARA Holdings Stock Rises 9% After Earnings Miss Amid Cost-Cutting Focus
MARA Holdings (MARA) stock outperformed peers despite missing first-quarter results. Analysts view the company's focus on cost reduction positively.
- Jefferies analysts noted an improving Bitcoin price and MARA's investment in sustainable energy sources are expected to lower power costs and enhance margins.
- MARA is expanding its 114 MW wind farm and has activated its 25 MW micro flared gas data center to reduce energy expenses.
- Analyst Jonathan Petersen raised the price target from $13 to $16, maintaining a hold rating.
- Profit margins for Bitcoin mining have declined significantly due to rising power costs and recent halving events.
- MARA diversifies revenue through transaction services, mining pools, open market Bitcoin purchases, and green energy initiatives.
- H.C. Wainwright analyst Kevin Dede emphasized that MARA distinguishes itself by focusing on technology development in power conversion.
- Dede maintains a buy rating with a price target of $28, agreeing on the strategy to leverage unused power for cost efficiency.
- MARA shares rose by 9%, while the CoinShares Valkyrie Bitcoin Miners ETF (WGMI) fell by 0.3%.