While Marathon Digital Holdings Inc (NASDAQ: MARA) took a hit on Monday dropping 12% on the day, MARA has been in an uptrend since reversing off 52-week lows in December. There are plenty of reasons to get excited about MARA which has been heavily shorted in the past and still carries a significant short position today. The price of bitcoin is rising, and Marathon produced a record 1,562 bitcoin in Q4, 2022 and it increased its bitcoin production 30% year-over-year from 3,197 BTC in 2021 to 4,144 BTC in 2022. Marathon is also debt free, has $117 million in cash in the treasury and holds 11,466 BTC valued at around $320 million.
MARA is regularly featured in the subreddit ShortSqueeze including one recent post titled: MARA: The greatest short squeeze in history begins next week. MARA has also been regularly posted about in the subreddit WallStreetBets; we wrote about TOPS here, another one recently featured on that subreddit. Just like its highly volatile stock which rocketed past $80 per share in December 2021, MARA is a volatile btc miner trading at under $10 per share, after a relatively poor April only mining 694.5btc, Marathon started off May with a bang, mining 7 blocks, 45.56btc, in the first half day of the new Month. We will be updating on MARA when more details emerge so make sure you are subscribed to newsytrends.com by entering your email below.
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Marathon Digital Holdings Inc (NASDAQ: MARA) is a digital asset technology company and a prolific bitcoin miner. The Company is in the process of building one of the largest, most agile, and most sustainably powered Bitcoin mining systems in North America focused on the realization of the full energization of its fleet of nearly 200,000 bitcoin mining rigs and growing. Marathon was formerly known as Marathon Patent Group and was the patent holding company that is the parent of Uniloc. Marathon purchased patents related to encryption in the 2010s and in 2021 the Company began acquiring bitcoin and bitcoin mining equipment. The Company is led by CEO Fred Thiel of Thiel Advisors who previously led Lantronix, where he doubled the company’s revenue growth and led to its initial public offering in 2000. Thiel was also the CEO of GameSpy from 2003 to 2004 before GameSpy merged with IGN. As of April 1, 2023, Marathon’s operating fleet consists of approximately 105,200 Bitcoin miners, theoretically capable of producing approximately 11.5 EH/s, according to the manufacturer’s specifications.
Current bitcoin mining facilities are: (all contracts expire in 2027 unless marked)
- McCamey, TX – Approximately 63,000 S19j Pros are deployed and operational at this site, with another 4,000 S19j Pros pending delivery and deployment in 2023.
- Garden City, TX – Approximately 28,000 S19 XPs are installed at this site, which is currently pending final regulatory approval for energization. Marathon Digital’s current expansion plans call for the deployment of 19 MW of immersion from a combination of new capacity and replacement of air-cooled units for immersion during 2023.
- Ellendale, ND – Approximately 57,000 S19 XPs are expected to be deployed at this site during the first half of 2023. Energization is expected to start late in the first quarter of 2023.
- Jamestown, ND – Approximately 5,600 S19 XPs are deployed and operational at this site, with planned deployments of another 10,400 air-cooled units during the first quarter of 2023. In addition to this air-cooled installation, the Company plans to deploy 768 units in immersion on the site during the second quarter of 2023.
- Granbury, TX – Approximately 12,500 S19j Pros and 4,400 XPs are currently deployed and being energized at this facility.
- Coshocton, OH – Approximately 2,800 S19 Pros are currently deployed and operational at this facility. Marathon Digital’s contract for this facility expires in June 2023 and the Company’s does not expect to renew this contract beyond this termination date.
- Plano, TX – Approximately 345 S19 Pros are currently deployed and operational at this facility.
- Kearney, NE – Approximately 2,300 S19 J Pros are deployed and operational at this site. The Company expects to deploy an additional 1,300 MicroBT units at this site in 2023.
- South Sioux City, SD – Approximately 660 S19 Pros were deployed at this site. The Company’s contract for this facility expired and the Company exited this facility in early 2023.
$MARA added to focus list. Could be a good pullback buy today. Still has 40% short interest. #BTC pic.twitter.com/ulVYaLf0Qx
— Dr. Mansi (@drmansipd) April 21, 2023
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2022 was a difficult year to be a Bitcoin miner, as the price of bitcoin declined Marathon recorded a loss of about $6 per share. Marathon weathered the storm however and achieved several operational milestones during the year, including becoming significantly more sustainably powered as it shifted away from fossil-fuel generation and broke the mold on deploying behind the meter at a large wind farm in Texas. While navigating the macro environment, pivoting its energy strategy, and negotiating new hosting contracts, Marathon doubled its hash rate to 7.0 exahashes of capacity year-over-year, and finished the year with one of its most productive quarters to date. Marathon produced a record 1,562 bitcoin in Q4, and it increased its bitcoin production 30% year-over-year from 3,197 BTC in 2021 to 4,144 BTC in 2022. In December 2022, Marathon fully paid down its outstanding balances under the revolving line of credit. In February 2023, it terminated its credit facilities with Silvergate Bank, which resulted in the release of 3,132 bitcoin that were previously held as collateral. Marathon is also pursuing alternative banking relationships in light of the recent developments with Signature Bank.
Maraton CEO Fred Thiel recently said: “During the first quarter of 2023, we made notable progress executing on our two primary initiatives for the year, which are to energize our previously purchased mining rigs to reach our target of 23 exahashes by the middle of this year and to optimize our performance so that we are both more effective and more efficient. During the quarter, we increased our operational hash rate 64% from 7.0 exahashes to 11.5 exahashes. We also observed improvements in the consistency of our hash rate, which indicates that some of the technological upgrades we have been implementing are starting to take effect. By improving our hash rate, we increased our bitcoin production 41% from the prior quarter to a record 2,195 bitcoin in Q1. In March, we produced a record 825 bitcoin, which is a 21% increase from the prior month. In addition to our operational progress, we also improved our financial position during the quarter. We reduced our debt by $50 million and increased our unrestricted bitcoin holdings by 3,132 bitcoin after we prepaid our term loan and terminated our credit facilities with Silvergate Bank. We exited the quarter with approximately $124.9 million in unrestricted cash and cash equivalents and 11,466 bitcoin, the market value of which was approximately $326.5 million on March 31. Given the operational and financial improvements we made during the first quarter, we remain optimistic that we can achieve our primary growth targets and establish Marathon as one of the largest and most energy efficient Bitcoin mining operations globally.”
$BTC $MARA the charts don’t lie https://t.co/YOvV8rYkwE pic.twitter.com/v1TvGcU4uJ
— Bracco ⚡️ (@Braczyy) April 30, 2023
We have a big pick Coming.
Currently trading at a $1.6 billion market valuation MARA has 1,684,177,592 shares outstanding up from 1 billion when the stock surpassed $80 per share at the end of 2021. The Company is debt free, has $117 million in cash in the treasury and holds 11,466 BTC valued at around $320 million. Not only that, Marathon produced a record 1,562 bitcoin in Q4, 2022 and it increased its bitcoin production 30% year-over-year from 3,197 BTC in 2021 to 4,144 BTC in 2022. As we said; MARA was one of the most shorted stocks of 2022 and early 2023 and currently has a massive short position in the stock. Besides being featured on the subreddit ShortSqueeze, MARA is regularly featured on WallStreetBets including a recent post titled: $MARA Squeezy McSqueeze that stated: $MARA is the 4th most shorted stock on the Nasdaq, with 46% of the float shorted. Cost to borrow is hovering around 70 – 110%. We will be updating on MARA when more details emerge so make sure you are subscribed to newsytrends.com by entering your email below.
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Disclosure: we hold no position in MARA either long or short and we have not been compensated for this article.
Editor’s Note: Why say MARA is rising on a day when MARA fell by 12%. While MARA did fall by 12% on Monday, MARA is in a major uptrend since reversing off 52-week lows in December.