Latest news with #MarathonDigital
Yahoo
a day ago
- Business
- Yahoo
MicroStrategy Rises 28% Year to Date: Buy, Sell or Hold the Stock?
MicroStrategy MSTR shares have appreciated 27.9% year to date (YTD), outperforming the Zacks Computer Software industry's rise of 5.9% and the broader Zacks Computer and Technology sector's fall of 1.7%.MicroStrategy is the world's largest Bitcoin treasury company holding 553.555 bitcoins as of April 27, 2025, representing 2.6% of all bitcoins in existence. As of April 28, more than 70 publicly listed companies, including the likes of Marathon Digital MARA, Semler Scientific SMLR and KULR Technology KULR hold 720,728 bitcoins worth $68.5 shares have outperformed Marathon Digital, Semler Scientific and KULR Technology shares, YTD. Marathon Digital, Semler Scientific and KULR Technology shares fell 12.9%, 25.8% and 67.9%, respectively, over the timeframe. Image Source: Zacks Investment Research The stock is currently trading above the 50-day and 200-day moving averages, indicating a bullish trend. Image Source: Zacks Investment Research However, bitcoin's volatility is a headwind for MSTR. Bitcoin is now trading above $105,891, much higher than the $76,000 it registered in early April. As of May 25, 2025, MSTR holds 580,250 bitcoins for a total purchase cost of $40.61 billion at an average price of roughly $69,979. The company benefits from the Trump administration's announcement of the establishment of a strategic Bitcoin reserve. Growing recognition of bitcoin as an asset class has attracted institutional interest, setting the stage for deeper integration of bitcoin into the U.S. financial system. These developments bode well for MicroStrategy's prospectsMSTR benefits from increasing bitcoin yield, 13.7% year to date (as of April 28, 2025), keeping the company on track to reach full year target of 15%, which is now raised to 25% and bitcoin dollar gain target to $15 billion (up from initial target of $10 billion). Bitcoin gains in dollar terms were $4.1 billion in the first quarter of 2025 and $5.8 billion as of April 28, 2025. The company's disciplined approach to capital raising through preferred equity offerings — Strike (8% convertible preferred is trading with an effective yield of roughly 9%) and Strife (10% fixed coupon perpetual preferred) — is a key catalyst. As of April 28, 2025, MSTR raised $6.6 billion through equity offerings and $3.4 billion through fixed income ($2 billion from convertible notes, $0.7 billion each through Strike and Strife).MicroStrategy has issued $20.9 billion in equities and $6.4 billion in fixed income securities as part of its 21/21 plan since Oct. 30, 2024. The company has $14.6 million remaining under fixed income securities and $0.1 million under equities as part of the existing plan. MicroStrategy currently plans to raise $42 billion through equity issuance and $42 billion through fixed income securities by the end of 2027. Under the current plan, the company has $21.1 billion in equity and $35.6 billion in fixed income securities remaining to be issued. MicroStrategy is benefiting from growing software subscription revenues that surged 62% year over year to $37.1 million and accounted for 33% of first-quarter 2025 total revenues. Subscription billings grew 38% year over year to $24.5 million. The company benefits from continuing cloud demand with its flagship Strategy One that powers some of the largest analytics deployments in the world. Strategy One supports varied industries, including retail, banking, technology, manufacturing, insurance, consulting, healthcare, telecommunications, and the public sector. MicroStrategy is leveraging generative AI to automate and accelerate the deployment of AI-enabled applications across rich partner base that includes the likes of Amazon Web Services, Microsoft, STACKIT, and Google is a growth driver. For second-quarter 2025, the Zacks Consensus Estimate for MSTR's loss has been steady at 12 cents per share over the past week. The company reported a loss of 76 cents in the year-ago quarter. MicroStrategy Incorporated price-consensus-chart | MicroStrategy Incorporated Quote For 2025, the Zacks Consensus Estimate for MSTR's loss has been steady at 41 cents per share over the past week. The company reported a loss of $6.72 per share in 2024. MicroStrategy shares are overvalued, as suggested by the Value Score of F. In terms of Price/Book, MicroStrategy is trading at 3.06X compared with Marathon Digital's 1.38X and Semler Scientific's 2.38X, suggesting a premium valuation. Image Source: Zacks Investment Research Image Source: Zacks Investment Research MicroStrategy benefits from its growing bitcoin holdings and increasing subscription revenues. However, challenging macroeconomic conditions and uncertainty about tariffs increase volatility in bitcoin trading. Stretched valuation is a currently has a Zacks Rank #3 (Hold), which implies that investors should wait for a better entry point to accumulate the stock. You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report MicroStrategy Incorporated (MSTR) : Free Stock Analysis Report Marathon Digital Holdings, Inc. (MARA) : Free Stock Analysis Report This article originally published on Zacks Investment Research ( Zacks Investment Research Sign in to access your portfolio
Crypto Insight
4 days ago
- Business
- Crypto Insight
MARA's Bitcoin mining revenue hits record $752M as BTC price soars
MARA Holdings, formerly Marathon Digital Holdings, reached a new all-time high in Bitcoin mining revenue, fueled by its recent surge to a record price. The company's annualized mining revenue exceeded $752 million on May 27, according to data from CryptoQuant, making it the most profitable day in the company's history. Marathon is currently the world's largest publicly traded Bitcoin mining firm by market capitalization. 'Quarterly reports are slow. Onchain shows revenue in real time,' CryptoQuant founder and CEO Ki Young Ju wrote in a May 27 X post, confirming the milestone. Marathon's record revenue surge occurred days after Bitcoin rose to a new all-time high of $112,000 on May 22, a development attributed by some analysts to Japanese bond market turbulence, which saw bond yields rise to new highs amid economic turmoil in the country. The revenue surge comes two weeks after MARA's earnings report for Q1, which missed Wall Street estimates by 0.35%. The company's Bitcoin production fell 19% year-over-year, primarily due to the April 2024 Bitcoin halving, which cut block rewards in half from 6.25 to 3.125 BTC. Marathon is the world's largest Bitcoin mining firm with a $5.18 billion market capitalization, according to Companiesmarketcap data. MARA's Bitcoin holdings surpass $5 billion Despite the reduction in production, Marathon has continued to expand its Bitcoin holdings. As of May 27, MARA's Bitcoin holdings were 48,237 BTC worth over $5.28 billion, making the Bitcoin mining company the world's second-largest corporate Bitcoin holder with over 0.23% of the total supply, Bitbo data showed. The top spot still belongs to Strategy (formerly MicroStrategy), which holds over $63 billion in Bitcoin. Despite the revenue surge, daily miner revenues averaged around $50 million, significantly below historic peaks of $80 million, signaling that there is still 'room to climb back to those previous highs,' noted macro researcher and CryptoQuant author Axel Adler, in a May 27 X post. Marathon adopted Bitcoin as a strategic treasury reserve asset in July 2024, when it added $124 million worth of BTC to its balance sheet. Source:
Yahoo
15-05-2025
- Business
- Yahoo
Investors Heavily Search Marathon Digital Holdings, Inc. (MARA): Here is What You Need to Know
Marathon Digital Holdings, Inc. (MARA) has recently been on list of the most searched stocks. Therefore, you might want to consider some of the key factors that could influence the stock's performance in the near future. Over the past month, shares of this company have returned +28.8%, compared to the Zacks S&P 500 composite's +9% change. During this period, the Zacks Financial - Miscellaneous Services industry, which Marathon Digital falls in, has gained 19.3%. The key question now is: What could be the stock's future direction? Although media reports or rumors about a significant change in a company's business prospects usually cause its stock to trend and lead to an immediate price change, there are always certain fundamental factors that ultimately drive the buy-and-hold decision. Rather than focusing on anything else, we at Zacks prioritize evaluating the change in a company's earnings projection. This is because we believe the fair value for its stock is determined by the present value of its future stream of earnings. We essentially look at how sell-side analysts covering the stock are revising their earnings estimates to reflect the impact of the latest business trends. And if earnings estimates go up for a company, the fair value for its stock goes up. A higher fair value than the current market price drives investors' interest in buying the stock, leading to its price moving higher. This is why empirical research shows a strong correlation between trends in earnings estimate revisions and near-term stock price movements. Marathon Digital is expected to post a loss of $0.38 per share for the current quarter, representing a year-over-year change of -58.3%. Over the last 30 days, the Zacks Consensus Estimate has changed -3.2%. The consensus earnings estimate of -$1.98 for the current fiscal year indicates a year-over-year change of -215.1%. This estimate has changed -20.1% over the last 30 days. For the next fiscal year, the consensus earnings estimate of -$1.37 indicates a change of +30.9% from what Marathon Digital is expected to report a year ago. Over the past month, the estimate has changed +17%. Having a strong externally audited track record, our proprietary stock rating tool, the Zacks Rank, offers a more conclusive picture of a stock's price direction in the near term, since it effectively harnesses the power of earnings estimate revisions. Due to the size of the recent change in the consensus estimate, along with three other factors related to earnings estimates, Marathon Digital is rated Zacks Rank #3 (Hold). The chart below shows the evolution of the company's forward 12-month consensus EPS estimate: While earnings growth is arguably the most superior indicator of a company's financial health, nothing happens as such if a business isn't able to grow its revenues. After all, it's nearly impossible for a company to increase its earnings for an extended period without increasing its revenues. So, it's important to know a company's potential revenue growth. For Marathon Digital, the consensus sales estimate for the current quarter of $206.97 million indicates a year-over-year change of +42.6%. For the current and next fiscal years, $860.87 million and $925.43 million estimates indicate +31.2% and +7.5% changes, respectively. Marathon Digital reported revenues of $213.88 million in the last reported quarter, representing a year-over-year change of +29.5%. EPS of -$0.40 for the same period compares with -$0.06 a year ago. Compared to the Zacks Consensus Estimate of $214.63 million, the reported revenues represent a surprise of -0.35%. The EPS surprise was -17.65%. Over the last four quarters, the company surpassed EPS estimates just once. The company topped consensus revenue estimates just once over this period. Without considering a stock's valuation, no investment decision can be efficient. In predicting a stock's future price performance, it's crucial to determine whether its current price correctly reflects the intrinsic value of the underlying business and the company's growth prospects. Comparing the current value of a company's valuation multiples, such as its price-to-earnings (P/E), price-to-sales (P/S), and price-to-cash flow (P/CF), to its own historical values helps ascertain whether its stock is fairly valued, overvalued, or undervalued, whereas comparing the company relative to its peers on these parameters gives a good sense of how reasonable its stock price is. The Zacks Value Style Score (part of the Zacks Style Scores system), which pays close attention to both traditional and unconventional valuation metrics to grade stocks from A to F (an An is better than a B; a B is better than a C; and so on), is pretty helpful in identifying whether a stock is overvalued, rightly valued, or temporarily undervalued. Marathon Digital is graded F on this front, indicating that it is trading at a premium to its peers. Click here to see the values of some of the valuation metrics that have driven this grade. The facts discussed here and much other information on might help determine whether or not it's worthwhile paying attention to the market buzz about Marathon Digital. However, its Zacks Rank #3 does suggest that it may perform in line with the broader market in the near term. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Marathon Digital Holdings, Inc. (MARA) : Free Stock Analysis Report This article originally published on Zacks Investment Research ( Zacks Investment Research Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Yahoo
29-01-2025
- Business
- Yahoo
MicroStrategy Adds Another Billion Worth Of Bitcoin, Will Sell More Shares For Future Buys
MicroStrategy purchased 10,107 bitcoin for roughly $1.1 billion over the past week. The publicly-traded bitcoin treasury company now holds 471,107 bitcoin purchased, worth roughly $47 billion at current prices. MicroStrategy shareholders voted last week to increase its number of Class A common shares to 10.3 billion. Separately, MicroStrategy also plans to offer 2,500,000 in new shares of MicroStrategy's Series A Perpetual Strike Preferred Stock for the purpose of buying more (MSTR) has shown no signs of slowing down their bitcoin purchases and bought another billion dollars worth of bitcoin (BTCUSD) last week. The company continued to flex its bitcoin treasury muscle with a purchase of 10,107 bitcoin for approximately $1.1 billion over the past week. This latest acquisition brings the firm's total holdings to 471,107 bitcoin. MicroStrategy has been utilizing equity sales and debt issuance to fund its bitcoin purchases, with this being the twelfth week in a row such a purchase was announced. The company issued roughly 2,76 million shares to finance last week's purchases. This latest move also coincides with shareholder approval to increase the authorized number of Class A common shares to 10.3 billion and shares of preferred stock to 1 billion. Additionally, the company announced an offering of 2,500,000 shares of MicroStrategy's Series A Perpetual Strike Preferred Stock on Monday. While MicroStrategy's approach to bitcoin as a treasury asset has inspired other publicly-traded companies, such as Marathon Digital (MARA) and Semler Scientific (SMLR), to do the same, it has also invited scrutiny regarding its debt-heavy strategy to acquire as much of the asset as possible. MicroStrategy stock, often considered a bitcoin proxy, was down 4% in recent trading and bitcoin slid below $100,000 amid a broader sell-off in crypto and equity markets. Read the original article on Investopedia Sign in to access your portfolio
