Jefferies Sees Nearly 160% Upside for Marathon Digital's Shares

The firm started coverage with a buy rating and 12-month price target of $51.

AccessTimeIconJan 28, 2022 at 1:55 p.m. UTC
Updated May 11, 2023 at 3:59 p.m. UTC
10 Years of Decentralizing the Future
May 29-31, 2024 - Austin, TexasThe biggest and most established global event for everything crypto, blockchain and Web3.Register Now

Marathon Digital (MARA) is on pace to become the largest publicly listed bitcoin miner this year, Jefferies said in a note on Friday.

  • An analyst from Jefferies started coverage with a 12-month price target of $51, implying a 158% increase from the stock's recent closing price.
  • “MARA is on track to be the largest publicly traded miner by the end of 2022, with deposits paid on more BTC ASIC miners than any of its peers,'' analyst Jonathan Petersen wrote, referring to bitcoin application-specific integrated circuit miners.
  • Marathon is “highly profitable” despite the recent sell-off in its shares as the company’s current mining margin is around 80%, compared with about 90% in November, according to the note.
  • “We estimate that BTC will rise at a +32% CAGR (compound annual growth rate) through '24 and that MARA's revenue and EBITDA (earnings before interest, taxes, depreciation and amortization) will rise at a +120% and +95% CAGR, respectively,” Petersen said.
  • The stock has been initiated with a buy rating by Jefferies.
  • On Dec. 29, Marathon Digital said it expects to have 199,000 operational miners generating 23.3 exahashes per second by early 2023. An exahash is a measure of computing power.
  • Marathon’s stock had fallen about 74% since reaching its November peak, according to TradingView data, as the crypto miners tumbled with the sharp sell-off in bitcoin and the broader crypto market.
  • Why Financial Advisors Are So Excited About a Spot Bitcoin ETF
    1:02:43
    Why Financial Advisors Are So Excited About a Spot Bitcoin ETF
  • Binance Processes Nearly $1B in Net Outflows As CEO CZ Resigns
    08:48
    Binance Processes Nearly $1B in Net Outflows As CEO CZ Resigns
  • How Much Money Will Flow Into Bitcoin ETFs? Here’s One Projection
    40:42
    How Much Money Will Flow Into Bitcoin ETFs? Here’s One Projection
  • NFL Quarterback, Two YouTube Influencers Settle FTX Case; Sen. Warren's Crypto Bill Gets New Support
    02:35
    NFL Quarterback, Two YouTube Influencers Settle FTX Case; Sen. Warren's Crypto Bill Gets New Support
  • Disclosure

    Please note that our privacy policy, terms of use, cookies, and do not sell my personal information has been updated.

    CoinDesk is an award-winning media outlet that covers the cryptocurrency industry. Its journalists abide by a strict set of editorial policies. In November 2023, CoinDesk was acquired by the Bullish group, owner of Bullish, a regulated, digital assets exchange. The Bullish group is majority-owned by Block.one; both companies have interests in a variety of blockchain and digital asset businesses and significant holdings of digital assets, including bitcoin. CoinDesk operates as an independent subsidiary with an editorial committee to protect journalistic independence. CoinDesk employees, including journalists, may receive options in the Bullish group as part of their compensation.

    Aoyon Ashraf

    Aoyon Ashraf is managing editor with more than a decade of experience in covering equity markets


    Learn more about Consensus 2024, CoinDesk's longest-running and most influential event that brings together all sides of crypto, blockchain and Web3. Head to consensus.coindesk.com to register and buy your pass now.