Marathon’s Bitcoin Production Surges, What To Expect From MARA?

Marathon Digital Holdings Inc. engages in mining multiple cryptocurrencies. It is a digital asset technology company that focuses on the blockchain ecosystem and digital assets. It was founded in the year 2010 and has it has its headquarters in Las Vegas. The company’s stocks are traded in NASDAQ under the ticker name MARA.

The current market cap of Marathon Digital Holdings Inc. is $1.698B and has a negative earnings-per-share ratio of -$3.95 which generally indicates that the company is making a loss on each share of MARA. The current beta of the company is 4.35 resulting which the stock moving more than the market as a whole and so the return of the stock may also vary with the same intensity.

The MARA stock trades with an average volume of 30.20M shares over three months and has 168.871M shares floating in the market. During the quarter ending on March 31, 2023, the company made a voluntary change in accounting principles from LIFO to FIFO. The company also has a negative ROE of -93.86% which indicates a decline in share price over time.

Marathon Digital Holdings Inc. Stock Performance Analysis

Marathon Digital Holdings Inc. has had a really poor profit margin over the years, this could be due to a decline in the crypto price as the company operates in cryptocurrencies. Marathon Digital Holdings Inc. has reported an advance of 228.1% in revenue year-on-year in Q2 2023. The profit margin for the company is negative to -583.20% in the year ending 2022. Also, the net income of the company has declined by 90.0% in Q2 2023 despite of increase in revenue.

Performance Analysis of MARA Stock

MARA stock price has not performed well over the last few years. Despite the experts are still bullish on the stock aiming for growth of more than 100% in MARA share price. The company has been unable to meet the EPS estimates over the years and last time outperformed in the year 2020.

MARA Stock Technical Analysis

The MARA stock price is following a consistent downtrend declining below the dynamic trendline. After a huge decline in price, the stock price has made a bullish candlestick breaking the previous day’s highs. If the share price breaks above the level of $9.70 we can witness a further advance in share price.

The 50-day and the 200-day EMAs on the MARA stock chart have formed a death cross. This has led to a consistent decline in price. This also indicates the beginning of a huge downtrend which can sustain for a longer duration. This can drive the MARA stock price to lower levels.

MARA stock’s RSI on the daily timeframe is highly negative as it has just declined below the oversold zone. The following behavior of the RSI indicates the presence of sellers in the stock.

Conclusion

The MARA stock price has been consistently following a downtrend making lower low structure following a bearish market structure. The fundamentals of the company are also poor. MARA stock is currently following a bearish RSI and EMA cross. The overall outlook of the Marathon Digital Holdings Company looks bearish.

Therefore, if the MARA stock breaks above the level of $9.70 we might witness some upside in the share price. If the stock fails to do so, the share price can continue to decline to lower levels.

Technical Levels

Support levels- $3.00 and $5.20
Resistance levels- $12.30 and $19.40

Disclaimer

The information provided in this article, including the views and opinions expressed by the author or any individuals mentioned, is intended for informational purposes only. It is important to note that the article does not provide financial or investment advice. Investing or trading in cryptocurrency assets carries inherent risks and can result in financial loss.

Andrew is a blockchain developer who developed his interest in cryptocurrencies while his post-graduation. He is a keen observer of details and shares his passion for writing along with being a developer. His backend knowledge about blockchain helps him give a unique perspective to his writing