Crypto Mining Company Marathon Digital Set for 47% Upswing
Marathon Digital Holdings Inc (MARA), a crypto mining company, is expected to see a significant turnaround in the coming months, according to Gianni Di Poce. Despite a challenging year in 2022, which saw the company generate $117.75 million in revenue but incur losses of $686.74 million, Di Poce is bullish on Marathon's future.
In the last five trading sessions, Marathon's shares have risen by nearly 20%, catching the attention of the analyst. Di Poce, in his weekly "Benzinga Pro Insider Report," set a $12 to $13 price target for the company, provided the stock remains above $6.70. He believes the shares are undervalued, with the stock price just above its Book Value of 5.35.
From a technical analysis standpoint, Marathon's stock has completed a higher low and broken out from a descending price channel, signaling the beginning of a new bull trend. The trend would be confirmed if prices surpass the high from January, according to Di Poce.
The current macroeconomic environment and the recovery in the growth segment of the equity market are providing some relief for Marathon. The company holds approximately 8,260 Bitcoin and has more than $200 million in unrestricted cash. Furthermore, Di Poce highlighted that Marathon recovered an additional 3,132 Bitcoins from the collapsed crypto lender, Silvergate Bank, earlier this month.