Key points:
- BTIG issue ‘Buy’ rating for Marathon Digital with a price target of $50
- Company is well-situated as an ‘early-mover’ in the sector
- The ‘Buy’ coverage algins with a ‘Very Bullish’ average across Wall Street
Mining stocks are incredibly popular with those that seek a slice of the blockchain pie without direct investment in cryptocurrency themselves. The belief is that by investing in mining stocks, investors aren’t subject to the extreme bouts of volatility – yet this isn’t quite the case. For example, Marathon Digital (NASDAQ: MARA), a mining operation hoping to be the largest in North America, is often subject to losses depending on the fluctuation of Bitcoin.
However, the company is attempting to decrease business risk by formulating contracts that will protect the company from falling BTC prices. Along with plans to keep energy levels low, and a bold growth strategy based on an improved hash rate; Marathon Digital has caught the eye of BTIG, who initiated coverage on the stock this morning with a ‘Buy’ and a price target of $50.
Ready to put what you’ve learned into practice?
Try IG’s platform with £10,000 in virtual funds and practise trading
without putting your own money at risk.
Try IG with a demo account →
Spread bets and CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 69% of retail investor accounts lose money when trading spread bets and CFDs with this provider.
Learn the markets with IG Academy
Build your knowledge with IG Academy educational content, then use a
demo account to practise what you’ve learned on the IG platform.
Explore IG →
Spread bets and CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 69% of retail investor accounts lose money when trading spread bets and CFDs with this provider.
See how trading works before risking real money
IG’s demo gives you access to thousands of markets and £10,000 in
virtual funds, so you can explore the platform and test your ideas first.
Open an IG demo →
Spread bets and CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 69% of retail investor accounts lose money when trading spread bets and CFDs with this provider.
Turn trading theory into practical experience
Learn with IG Academy, explore charts and market tools, and practise
strategies in a simulated trading environment before going live.
Start practising with IG →
Spread bets and CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 69% of retail investor accounts lose money when trading spread bets and CFDs with this provider.
Ready to take your learning further?
IG combines market education, analysis and an established trading platform,
giving you the tools to keep learning as you develop your trading skills.
Discover IG →
Spread bets and CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 69% of retail investor accounts lose money when trading spread bets and CFDs with this provider.
BTIG analyst Gregory Lewis based his target on the miner’s ‘early-mover advantage’, allowing the company to solidify long-term contracts as attractive pricing. Lewis outlines the company as ‘well-positioned for the ongoing BTC mining up-cycle’.
The company’s unique no-infrastructure model allows the company to focus practically all of its available capital towards mining rigs; it does mean however that they are incredibly exposed to increasing hosting costs. Overall, Marathon Digital is well-situated within its respective sector; and Wall Street seems to agree, with the BTIG coverage aligning with the average Wall Street rating of Very Bullish.
