Marathon Digital Holdings (MARA) is a digital asset technology business that mines cryptocurrencies with a focus on the blockchain ecosystem and digital asset development.
MARA stock has been volatile as the price of Bitcoin has fluctuated significantly.
But the fundamentals and technical analysis show that buying MARA stock now is a good idea.
Let’s start with the fundamentals…
MARA Stock Fundamental Analysis
In the first quarter, Marathon Digital lost 20 cents per share. This compared to a 12-cent loss in the prior quarter and EPS estimates of 2 cents that were missing.
Marathon's net income was $83.4 million, but when you consider in the more than 4,800 Bitcoin it bought in January, the company ended the quarter with a $137 million profit on paper.
Sales were $9.2 million, up 1,459% from $590,000 last year.
As of Q1 2021, the company reported having $204.4 million in cash and equivalents.
Liquidity was $503.2 million, including the value of their 5,134 Bitcoins at the moment.
Analysts estimate the company will turn a profit in the second quarter, with EPS of 29 cents and revenue of $43.5 million.
MARA Stock Technical Analysis
In early April, Marathon Digital was building a bearish head-and-shoulders pattern.
Because stock values are so tightly linked to Bitcoin prices, they've been on a wild ride.
MARA shares were trading at $10 at the start of the year. The stock rose to a high of $57.75 as Bitcoin rose in value.
With the stock trading at $20 per share today, I think now is a great time to allocate a small percentage of your portfolio to MARA.
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