- Jefferies analyst Jonathan Petersen initiated coverage of Marathon Digital Holdings Inc (NASDAQ:MARA) with a Buy rating and $51 price target, suggesting an upside of 139%.
- He sees Marathon Digital being on pace to become the most significant public Bitcoin miner on an EH/s basis in 2022.
- The company's current fleet of more than 30,000 miners generates 3.5 exahash of processing power, representing about 1.9% of the total Bitcoin mining market. It will likely grow to 199,000 miners generating 23 EH by year-end 2022, which he estimates will exceed 5% market share on full deployment.
- The recent selloff in Bitcoin's price moderates the revenue growth outlook, but he still expects about 80% mining margins and a 12-18 month payback period on recent ASIC miner purchases and assumes the average price of Bitcoin in 2022 at about $53,400.
- Marathon Digital focuses on mining digital assets. It owns crypto-currency mining machines and a data center to mine digital assets.
- Price Action: MARA shares traded higher by 7.43% at $21.26 on the last check Friday.
