Latest news with #MarathonDigitalHoldings
Yahoo
27-05-2025
- Business
- Yahoo
MARA's Fred Thiel Says U.S. Should Start Mining Bitcoin to Fill Strategic Reserve
LAS VEGAS, Nevada — Marathon Digital Holdings (MARA) CEO Fred Thiel has an idea for how U.S. President Donald Trump's administration can make good on its promises to build out a strategic bitcoin reserve: start mining. Speaking on a panel at Bitcoin 2025 in Las Vegas on Tuesday, Thiel said that the U.S. government has many potential ways to generate bitcoin to fill the strategic bitcoin reserve that would adhere to the 'budget-neutral' acquisition strategy laid out in Trump's March executive order, including using excess hydroenergy to mine bitcoin domestically. Though it's been nearly three months since Trump authorized the establishment of a strategic bitcoin reserve, it remains unclear exactly how — and when — the government will take steps to actually begin filling it, a source of evident frustration among a number of speakers at the conference. 'I think it's critical,' Thiel said of acquiring bitcoin for the reserve. 'The U.S. making a statement that we're going to have a strategic reserve is an empty statement unless you start putting stuff into it.' At this point, the reserve is supposed to hold all of the bitcoin that has been sized by the government in civil and criminal forfeitures — estimated to be approximately 200,000 bitcoins. But many in the industry and government, including Sen. Cynthia Lummis (R-Wyo.), think that getting the government's existing stockpile of bitcoin into a strategic reserve is merely a first step, to be followed by bigger, more meaningful acquisitions. In March, Lummis re-introduced legislation — the so-called BITCOIN Act of 2025 — aimed at codifying Trump's plans for a strategic bitcoin reserve. Under Lummis' plan, after getting all of the forfeited bitcoin into the reserve, the U.S. government would spend the next two to five years converting a portion of its gold certificates into bitcoin. 'We have enough assets in under performing assets that we can get five percent of the world's bitcoin without spending a single dime,' Lummis said. However, Lummis acknowledged that it's unlikely that any real movement on the BITCOIN Act — or, more broadly, taking any significant steps to fill the strategic reserve with anything other than forfeited assets — will come before Congress works its way through stablecoin and market structure legislation. 'It's going to be a heavier lift than I thought because so many people don't understand bitcoin,' Lummis said. 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
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
01-04-2025
- Business
- Yahoo
Coinbase Stock Falls 33% in Worst Quarter Since FTX Collapse as Crypto Market Declines
Coinbase shares dropped 33% in the first quarter of 2025, making it the company's worst quarter since FTX collapsed in 2022. The stock opened the year at just over $257 and ended March at around $172. Despite this decline, Coinbase expects to report between $685 million and $765 million in subscription revenue, with analysts estimating total Q1 earnings at $1.87 billion. Bitcoin has fallen more than 20% from its all-time high, and Ethereum has dropped over 45%. Crypto-linked stocks followed a similar pattern. Marathon Digital Holdings lost over 37%, Riot Platforms fell by 32%, and Bitfarms saw nearly half its value erased. Hut 8 dropped by almost 45%, Hive Digital Technologies declined by more than 50%, and mining hardware producer Canaan Creative lost 58.4%. The broader stock market also struggled, with the S&P 500 index losing over 4.75% in Q1. Analysts attribute this to growing fears over U.S. President Donald Trump's trade policies. Reports suggest traders are anticipating an announcement on April 2 regarding new tariffs, adding to economic uncertainty. Alex Obchakevich of Obchakevich Research said Trump's tariffs are making the market unpredictable. Oppenheimer analyst Owen Lau pointed out that concerns about tariffs, a potential trade war, and recession fears are driving investors away from riskier assets, including cryptocurrencies. Strategy (formerly MicroStrategy) was one of the few crypto-related stocks that held relatively steady, dropping just 3.95% from $300.11 to $288.27. Analysts say its Bitcoin holdings and strong 2024 performance helped prevent deeper losses. Bitcoin hit a record high of over $109,000 on Trump's Inauguration Day in January but has since dropped to around $83,000. The decline was partially driven by Trump's recent announcement of a strategic Bitcoin reserve, which disappointed investors expecting greater government support. Crypto stocks surged after Trump's election victory but have since given up those gains. While the industry is gaining influence in Washington and moving closer to traditional financial markets, this has yet to translate into a recovery. Cryptocurrency analyst Connor Loewen said the market may need new catalysts to regain investor confidence, as the excitement seen earlier in the year is fading. Sign in to access your portfolio
Yahoo
21-03-2025
- Business
- Yahoo
MSTR, MARA, or RIOT: Which U.S. Crypto Stock is the Bitcoin Maestro?
As Bitcoin gains adoption across all levels of society, from governments to institutions to individuals, it is fundamentally reshaping corporate crypto strategies, forcing a rethinking of how businesses engage with digital assets. Easily identify stocks' risks and opportunities. Discover stocks' market position with detailed competitor analyses. Three U.S. companies, in particular, Strategy (MSTR), Marathon Digital Holdings (MARA), and Riot Platforms (RIOT), have emerged as high-profile pioneers in utilizing Bitcoin as a treasury asset. Each has taken a slightly different path, but all have doubled down on their Bitcoin bets regardless of the cryptocurrency's price tilts in recent months. Let's examine how these three businesses navigate the surge in Bitcoin corporate adoption, tailoring their market strategies to fit their unique crypto approaches… Strategy, the intelligence software business turned crypto whale, has pioneered what has since become known as 'Bitcoin treasury adoption' under its enigmatic CEO (now chairman) Michael Saylor, who famously started scooping up BTC in 2020. Fast-forward to March 2025, and MSTR has raked in almost 500,000 BTC at an average cost of $66,406 apiece. On paper, that's nearly $9 billion in unrealized gains. Not only has the plucky Bitcoin strategist continued buying, but management has also raised the leverage on their purchases while issuing more stock to obtain more funding. Just a couple of days ago, the company announced its second preferred stock issuance to raise more capital, once again, to buy more Bitcoin. This strategy might sound brilliant in a bull market, as MSTR's share price tends to leap even faster than BTC itself. Each rally allows them to raise fresh funds (especially as past convertibles become more profitable and can essentially be considered as equity) and buy more Bitcoin, fueling a positive feedback loop. Then again, if Bitcoin tumbles, you're staring at a mountain of liabilities with no easy exit. So far, though, the market has rewarded the boldness, with Strategy's stock soaring roughly 600% in three years. And while the stock has slipped lately, the fact that capital raises continue to be value-accretive (as share issuances and debt offerings occur above NAV or above par, respectively), the company continues to generate substantial shareholder value. On Wall Street, every analyst covering the stock is bullish. MSTR stock carries a Strong Buy consensus rating based on 11 unanimous Buy ratings over the past three months. MSTR's average price target of $548.91 per share implies over 80% upside potential over the next twelve months. Unlike Strategy, Marathon Digital isn't just buying Bitcoin via exchange or OTC; it is also minting BTC through mining. With a massive hash rate of around 53 exahashes per second, Marathon's operation can generate a substantial flow of new coins monthly. Today, the company holds over 46,000 BTC in its reserves, marking another company following the 'Bitcoin as treasury' playbook. Buy why does the mining operation matter? Because it allows Marathon to acquire coins at a cost below market value. Of course, that only works as long as Bitcoin's price stays high enough to cover electricity and overheads. With BTC cruising above $80,000, the strategy is paying off handsomely. If Bitcoin retreats, Marathon's profits will surely follow. The most significant difficulty for MARA is keeping up with energy costs, environmental scrutiny, and the relentless competition from other miners ramping up their hash rates. Today, MARA owns the second-largest Bitcoin treasury in the world, second only to MSTR. Moreover, with over 90% of the stock price reflected in BTC book value, investors appear to be getting the mining business at a steep discount. Nine analysts offer price targets on MARA stock via TipRanks, and the stock carries a Moderate Buy consensus rating based on four Buy and five Hold ratings over the past three months. MARA's average price target of $23 per share implies ~ an 84% upside over the next twelve months, mirroring MSTR's potential. Riot Platforms joined the treasury strategy a bit later than the others but did it with flair. Last December, the company raised $525 million via convertible bonds and bought 5,000 BTC at about $100,000 each, lifting its holdings to roughly 15,019 BTC. Riot unlocked so much value through this move and attracted so much investor interest that the stock somehow outpaced both MARA and MSTR, rocketing over 550% last year. Since the beginning of this year, the Bitcoin buying spree has continued, with 18,692 BTC on the balance sheet today, making Riot the world's third-largest Bitcoin treasury company. So far this year, the stock is down 24%. To provide some context about the mining business, Riot's hash rate hovers around 31.5 exahashes per second, lower than MARA's, but it's still substantial. Like any other mining business, the real challenge is juggling debt if Bitcoin's price dips. Mining is capital-intensive, so borrowing can accelerate expansion but also magnify risks. I like Riot's approach of diversifying its operations slightly, leveraging its massive Texas mining facilities while exploring energy credits and grid balancing to manage costs. So far, so good. Yet, with around 59% of the stock price being backed by BTC, there is also a meaningful margin of safety when it comes to Riot's investment case. Every analyst covering RIOT stock is bullish. RIOT carries a Strong Buy consensus rating based on 11 unanimous Buy ratings over the past three months. RIOT's average price target of $18.05 per share implies a 132% upside potential over the next twelve months. The Bitcoin treasury strategy has turned MSTR, MARA, and RIOT stocks into high-risk, high-reward Bitcoin plays. Such plays amplify gains when the king of crypto surges and expose them to the downside if the market retreats. The investment case for any of these pioneering Bitcoin strategy stocks all comes down to whether you believe in Bitcoin's long-term prospects. If you are a BTC bull like I am, all three stocks present significant upside because they are essentially leveraged plays on BTC. Then again, if you're bearish on Bitcoin, they also offer compelling short opportunities. For the time being, Strategy is the Bitcoin king, given its $73 billion market cap, early-mover advantage, and BTC war chest. However, one could argue that RIOT is the maestro of the three, given its Texas mining angle and diversification measures that somewhat mitigate the inherent risk in any crypto stock. The alpha here is the extreme volatility and elevated options premiums, which create substantial profit potential for those who position themselves wisely. Personally, I've taken a bullish stance by owning MSTR and selling puts as a hedge. One thing is certain: if you're risk-averse or uncomfortable with volatility, these stocks are not for you. Disclosure Questions or Comments about the article? Write to editor@
Globe and Mail
19-03-2025
- Business
- Globe and Mail
The Digital Economy Boom: Why Governments Are Racing to Keep Up
Innovation and adaptation have long been hallmarks of economic evolution. Throughout history, new technologies and financial tools have reshaped industries, created wealth, and redefined global markets. Whether it was the adoption of paper money, the rise of credit cards, or the digitalization of banking, financial systems have consistently transformed to meet the needs of a changing world. One of the most significant trends in recent years has been the rapid digitization of assets. From tokenized real estate to blockchain-based financial services, the ability to securely and transparently transact in digital form is revolutionizing the global economy. As nations and institutions embrace this shift, governments are now beginning to take more proactive steps to ensure they remain competitive in the evolving financial landscape. The Newest Catalyst for Digital Currency President Donald Trump's new executive order to establish a U.S. strategic cryptocurrency reserve marks a significant shift in the government's stance on digital assets. By using cryptocurrencies seized in criminal and civil forfeitures, the U.S. is acknowledging their long-term value and viability as strategic assets. This move contrasts with past administrations, which favored regulation over adoption, signaling a more open approach to cryptocurrencies. The creation of a government-held crypto reserve boosts institutional credibility and sets a potential precedent for other nations. For the crypto market, this is a bullish development, as noted by Chao Deng, CEO of HashKey Capital, who highlighted the momentum building under Trump's leadership. This move not only legitimizes cryptocurrencies but also reinforces their role in the financial system, offering confidence for institutional investors and potentially stabilizing long-term prices. This shift is particularly significant for companies operating in the cryptocurrency mining and trading sectors. Firms like C2 Blockchain Inc. (OTCPK: CBLO), Marathon Digital Holdings (NASDAQ: MARA), Coinbase (NASDAQ: COIN), and Riot Platforms (NASDAQ: RIOT) are strategically positioning themselves to capitalize on this evolving landscape. Industry Leaders Adapting to Market Shifts Marathon Digital Holdings has demonstrated resilience in an increasingly competitive environment. In February 2025, the company reported a 4% increase in daily bitcoin production despite a 6% drop in total bitcoin mined due to increased network difficulty and fewer operational days. The completion of a 40-megawatt data center in Ohio, designed to accommodate over 10,000 S21 Pro immersion miners, reflects MARA's commitment to scaling operations and reducing costs through energy generation. Coinbase, on the other hand, is uniquely positioned to benefit from the strategic bitcoin reserve. With its regulated, secure platform and expansive reach across 40 blockchains, Coinbase is well-positioned as the go-to custodian for government and institutional crypto assets. Its history of compliance and partnerships with over 150 government entities underscores its growing influence in shaping the crypto economy. Meanwhile, Riot Platforms is focusing on operational efficiency and power management to maintain its competitive edge. Despite planned maintenance and weather-related power curtailments in February, Riot mined 470 bitcoin. The company's Corsicana facility, which aims to access up to 1.0 gigawatt of power by 2026, highlights its ambition to integrate artificial intelligence (AI) and high-performance computing (HPC) into its mining operations. CBLO's Strategic Approach to Disruption While these industry giants expand their footprint, C2 Blockchain is emerging as a lean yet impactful player in bitcoin mining. The company is aiming to construct a scalable 14-megawatt bitcoin mining facility in Georgia, designed for efficiency and immediate revenue generation through a strategic hosting partnership. Unlike larger firms burdened by massive capital expenditures, CBLO focuses on agility, leveraging a streamlined operational model to maximize returns. CBLO's commitment to sustainability is another differentiator. The new facility will integrate renewable energy solutions to minimize its carbon footprint while optimizing operations for long-term growth. This approach aligns with increasing regulatory scrutiny and investor demand for environmentally responsible crypto mining practices. Next-Gen Banking: Expanding Beyond Mining with Crypto-Backed Lending While established industry giants refine their strategies, C2 Blockchain is making bold moves to differentiate itself. In addition to the Georgia facility in the works, CBLO is expanding into the financial services sector with an innovative approach to crypto-backed lending. In a partnership with CoinEdge, a fast-growing cryptocurrency financial services provider, CBLO is launching a next-generation lending platform. This initiative allows users to unlock liquidity without selling their digital assets, leveraging major cryptocurrencies like Bitcoin (BTC), Ethereum (ETH), and Solana (SOL) as collateral. Unlike traditional financial products, this model enables borrowers to retain ownership while accessing capital for investments, debt consolidation, or everyday financial needs. Key Features of the CoinEdge Crypto Lending Platform: • Liquidity Without Liquidation: Borrow against crypto assets without selling • Flexible Repayment Options: Tailored to fit diverse financial strategies • Institutional-Grade Security: Real-time monitoring and robust collateral protection • Seamless User Experience: Fast approvals and transparent lending terms "This partnership with CoinEdge allows us to offer a smarter, more flexible way for crypto holders to unlock liquidity," said Levi Jacobson, CEO of C2 Blockchain. "With growing demand for alternative financing solutions, our platform provides a secure and efficient option for managing digital assets while optimizing financial opportunities." While CBLO stands to generate revenue from its mining operations, this new initiative positions the company as more than just a mining firm; it's now a player in the broader digital asset ecosystem. By integrating financial services into its business model, CBLO is poised to benefit from the growing legitimacy of cryptocurrencies, reinforced by the U.S. government's recent strategic reserve initiative. -- C2 Blockchain Inc. (OTCPK: CBLO) Full Corporate Write-Up: Click Here. -- All opinions and information provided above are intended for educational and research purposes only. The information provided above should be used as a starting point for conducting any research on the public companies discussed. All readers should do their own due diligence and research when determining which investment strategies are best suited for them or seek the advice of an investment professional prior to making an investment decision. The profiles of the above discussed public companies are not in any way a solicitation or a recommendation to buy, sell or hold their securities. The above article is sponsored content. Any forward-looking statements set forth in the article above are based on expectations, estimates and projections at the time such statements are made that involve a number of risks and uncertainties which could cause actual results or events to differ materially from those presently anticipated. Forward looking statements may be identified through the use of words such as 'projects,' 'foresees' 'expects,' 'will,' 'anticipates,' 'estimates,' 'believes,' 'understands' or by statements indicating certain actions 'may,' 'could' or 'might' occur. There is no guarantee past performance will be indicative of future results or that any such forward-looking projections will occur. For a complete disclaimer, investors are encouraged to click here: View more of this article on About Media, Inc.: Founded in 1999, is one of North America's leading platforms for micro-cap insights. 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