A Bitcoin Trailblazer: Marathon Digital. Having seen how well Marathon Digital (MARA) performed in the previous year. Investors will be hoping for a repeat in 2022. Marathon Digital’s stock rose. By 214 percent in 2018, so there is much to live up to in the coming year.
That said, while Kevin Dede of H.C. Wainwright hasn’t set expectations quite as high. As some others, the analyst believes the company will have another strong year. And points to two recent moves made by the company that are “typical of its trendsetting status.” Also represent “giant leaps for North American bitcoin mining” as examples of this.
Marathon made what Dede believes to be the “biggest North American miner buy order. By hash in history” in December, according to the company.
With the purchase of 78,000 Antminer S19 XP computers for a total of $879 million. The business expects to create approximately 140 TH/s each machine. For a total of approximately 10-11 EH/s.
For the purposes of comparison, this amounts to more hash. Than the combined output of two or three average institutional bitcoin mining competitors in North America. It will also increase Marathon’s overall hash rate to 23.3 EH/s by early 2023. And it will increase the total mining fleet of Marathon. To around 199,000 bitcoin miners by the end of the year.
Because of the size of the fleet, it is necessary to implement. Sophisticated energy management systems, which is where the second “great leap” comes in. Marathon’s power joint venture with BeoWulf, which for the first time combined crypto mining. Directly with “massive, single-purpose energy supply, behind the grid meter.” Is another “even greater step in energy capture and control,” according to the company.
Marathon of A Bitcoin Trailblazer and an unknown Texas green energy supplier
Marathon Energy, along with a “unnamed green energy supplier in Texas,”. And Compute North, the company’s hosting service provider. For its machines located outside of Hardin (the BeoWulf facility). Have formed a three-way joint venture to develop and market renewable energy technologies. Marathon Energy, along with a “unnamed green energy supplier in Texas,”. And Compute North, the company’s hosting service provider for its machines. Located outside of Hardin (the BeoWulf facility), have formed a three- (JV).
This Marathon will receive enough power to run its 169,000-machine fleet. According to Dede’s understanding, minus the 30,000 machines at Hardin, thanks to the JV. Compute North will provide the physical infrastructure. And monitor the day-to-day operations of the fleet, according to Dede.
Marathon’s machines could consume as much as 550-600MW of energy by early 2023. As per Dede, who concluded, “A trailblazer in scale bitcoin mining deployment. Marathon’s gutsy commitment to all strategically tied constituents. Has rewarded shareholders handsomely since implemented in 2020. Audentes Fortuna iuvat, or fortuitous fortune,” as the Latin phrase goes. Compute North and the unnamed green energy partner.Could be responsible for creating and managing as much as 550
Dede rates MARA as a Buy, predicting that the stock will gain. By 69 percent over the next 12 months based on his $50 price prediction for the firm.
When compared to the projections of his peers. Dede’s projection looks to be conservative in nature. The two new Buys not only raise the stock’s consensus recommendation to a Strong Buy. But they also increase the stock’s predicted growth by 131 percent over the next year. Based on the average target price of $68.33 set by analysts.