This Thanksgiving, Fred Thiel, CEO of Marathon Digital Holdings (MARA), had much to be thankful for. In a social media post, Thiel expressed immense gratitude for his team’s accomplishments, highlighting a record-breaking market capitalization and exceptional mining results. The announcement arrived as MARA reached a staggering $9.03 billion market cap in Friday’s pre-market hours, a monumental achievement directly correlated to Bitcoin’s recent price surge exceeding $96,000. At the time of writing, BTC held steady at $97,375.73.
This impressive performance puts MARA in a strong position amongst its crypto-holding peers. While MicroStrategy Inc. (MSTR) boasted a market cap of $93.99 billion and Coinbase Global Inc. (COIN) reached $80.87 billion, MARA’s growth is particularly noteworthy, considering its strategic approach. Recall that in July, MARA adopted a “full HODL” strategy for its Bitcoin treasury, retaining all mined Bitcoin and only making strategic open market purchases. This strategy was further strengthened on Thursday with the issuance of $1 billion in zero-coupon convertible senior notes, adding another 703 Bitcoins to their impressive holdings. MARA now controls a substantial 34,794 Bitcoins.
Thiel’s celebratory message extended beyond the market cap, focusing on the company’s remarkably successful mining operations. He emphasized an energized hash rate nearing 50 EH/s, a testament to MARA’s operational efficiency and technological prowess. He concluded his statement with a hint of future developments, hinting at potential upcoming announcements to further boost MARA’s achievements in 2024.
This positive momentum is reflected in MARA’s stock price, which saw a 2.23% increase at the time of writing. While the consensus price target from 17 analysts sits at $23.83 (according to Benzinga Pro), recent analyst ratings from Barclays, Compass Point, and Macquarie suggest a potential 2.28% downside. This underscores the inherent volatility within the cryptocurrency market.
It’s important to consider the broader market context. While Marathon’s Q3 earnings report showcased a 35% year-over-year revenue increase, it slightly missed revenue and EPS estimates. This, alongside a recent Bitcoin price decline, impacted related stocks such as MicroStrategy (-3.63%), Coinbase (-3.40%), and even MARA itself, as Bitcoin’s rally temporarily stalled. Despite these market fluctuations, MARA’s exceptional performance remains a significant highlight.
Thiel’s recent call for the incoming Trump administration to bolster U.S. Bitcoin mining operations reflects a strategic move to safeguard American economic interests and fortify MARA’s competitive edge in the global cryptocurrency landscape. By increasing the U.S.’s share of the global hash rate, Marathon aims to solidify its position as a leader in the industry. This proactive approach further enhances MARA’s long-term prospects and contributes to the overall optimism surrounding the company’s future.
