Marathon Digital Holdings Stock Forecast: Is it time to buy MARA stock?
- MARA stock fails to rally on Thursday despite things looking bullish for Bitcoin.
- Bitcoin is higher on Friday and back above $55,000.
- MARA and crypto stocks should rally from the open if Bitcoin stays strong.
MARA stock sat out the rally on Thursday and was one of the few crypto stocks to do so. Most crypto stocks have seen renewed interest lately with cryptocurrency leader Bitcoin heading back over $50,000 as Fed Chair Powell said there were no plans to ban Bitcoin. This relieved investors in the cryptocurrency, which has been in the crosshairs of regulators in other regions, most notably China. Bitcoin headed over $50,000, and the crypto stock followed suit. Thursday though saw little pullback for Bitcoin, which should not have come as too much of a surprise.
A consolidation phase is not a bad thing after a strong move. However, this led some names in the crypto stock sector lower, such as RIOT (see here) and MARA. The overall tone remains bullish and again on Friday morning we see Bitcoin pushing higher above $55,000. Crypto stocks should follow on and have a strong Friday.
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Bitcoin daily chart
Marathon Digital (MARA) stock news
| Market Cap | $3.8 billion |
| Enterprise Value | $2.75 billion |
| Price/Earnings (P/E) | |
|
Price/Book | 10 |
| Price/Sales | 727 |
| Gross Margin | -77% |
| Net Margin | -78% |
| EBITDA | -$30.8 million |
| 52 week high | $ 57.75 |
| 52 week low | $2.06 |
| Short Interest | 15.1% |
| Average Wall Street rating and price target |
Buy $61.67 |
MARA stock released its September production update on Monday, October 4. Production increased by 91% QoQ. September saw MARA mine 1,252.4 Bitcoins, and it produced 340.6 Bitcoins during September. Marathon said it currently holds about 7,035 Bitcoin, and at current prices that is worth approximately $387 million.
MARA has recently also announced it has secured a revolving line of credit with Silvergate Bank for $100 million. This will be used for operations and for the purchase of new mining equipment. Silvergate is a well-known name in the crypto sphere with Morgan Stanley dubbing it a "crypto bank like no other." Silvergate was also chosen by Facebook (FB) to help with the issuance of its new stable coin, Diem.
MARA stock forecast
MARA staged a perfect bounce from the 200-day moving average and yearly Volume Weighted Average Price (VWAP). This was at $30.55. The stock now looks increasingly bullish following that bounce with the Relative Strength Index (RSI) above 50 and trending higher. The Moving Average Convergence Divergence (MACD) has crossed into bullish territory, and as mentioned above Bitcoin is back above $55,000. So Friday should see a strong performance for MARA stock.
The first target is the recent high at $44.97 from September 3. Breaking there brings MARA into a low volume zone, meaning price gains are easier. This would also need continued strength from Bitcoin as MARA is highly influenced by the price of the crypto leader. $30.55 also looks to have formed a bullish double bottom from mid-August and now early October.
Strong support remains at $30.
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Author
Ivan Brian
FXStreet
Ivan Brian started his career with AIB Bank in corporate finance and then worked for seven years at Baxter. He started as a macro analyst before becoming Head of Research and then CFO.
