Marathon Digital Holdings (NASDAQ:MARA) Stock Price Analysis

Getting the correct information about a company is crucial for making good decisions about investing. You should know the company’s Market Cap, its EPS rating, and the amount of cash and available credit it has.

Bitcoin holdings

Currently, Marathon Digital Holdings is the world’s second largest holder of Bitcoin. The company has an investment fund worth $100.7 million as of July 31. In addition, the company has a net loss of $22.2 million. The stock recently reported its latest quarterly financial report.

The company’s Q2 net loss was more profound than the previous quarter’s. The company accelerated expenses related to closing a facility in Hardin, Montana. The firm also decreased the fair market value of its investment fund by $79.7 million. In addition, the company’s quarterly revenue was $24.9 million, lower than the Wall Street expectation of $38.8 million.

The company produced 707 self-mined bitcoin during the second quarter of 2022. The firm also increased its total holdings of Bitcoin by more than a third. As of June 30, the company held 10,055 BTC, up from 8,956 BTC in May.

EPS rating

Although Marathon Digital Holdings, Inc. (NASDAQ: MARA) is a company focused on the generation of digital assets, it’s a stock that is not one to buy unless you’re a geek. The store has no track record of consistent revenue growth and has little to show for itself. For example, its most recent quarterly report indicated that its EPS was a meager -$2.40.

On a related note, the company released some nifty metrics for its mining operations. The most impressive, however, is that they could produce an outstanding 707 self-mined bitcoins in Q2 2022. Unfortunately, although it may seem like an impressive feat, the company’s production figures were down 44% yearly.

While the name of the company’s CEO is a little misleading, he did say that the company was on a roll. As a result, the company changed its name to Marathon Digital Holdings on March 1, 2021.

Market cap

Depending on your criteria, the market cap of Marathon Digital Holdings (MARA) could be the king of the hill or the queen of the heap. A streamlined analysis of the company’s financials shows it has an estimated worth of $0.62 billion. Its current stock price is $5.37, and its history of making money goes back to 2011. The company’s avowed focus is the blockchain ecosystem, and its latest foray into crypto mining is no slouch. So it’s do not a surprise that the company’s stock has skyrocketed, but its recent growth hasn’t kept pace with a market still looking for its next big thing.

In the MDA’s annual report, CEO Michael D’Antonio said, “Our vision is to create a decentralized global network of trust and security by utilizing the latest in cryptography, machine learning, and data analytics.” The company’s vision is backed by a $170 million seed round from a venture firm called Alphabet.

Liquidity

Marathon Digital Holdings, Inc. (NASDAQ: MARA) currently holds 10,127 BTC in its portfolio. According to the company’s latest release, the capacity is up from 9,941 BTC at the end of May. The fair market value of these holdings is $315.1 million. The company’s diversified business model includes mining and generating digital assets.

The company is also in the business of collecting encryption patents. Founded in 2010, the company started in the crypto world by purchasing patents from other firms, leading to Marathon Patent Group, Inc. Later, it partnered with Applied Blockchain to build data centers in North America.

In Q2, the company reported a more profound net loss than expected. However, its production increased by 8% over the same period last year. The company also raised its overall Bitcoin holdings by 21%.

Unrestricted cash and available credit facilities

Generally, unrestricted cash is listed as a line item in the cash and cash equivalents line on the balance sheet. It is typically used for payment of current liabilities or to satisfy short-term debt obligations. It is not pledged as collateral for debt or credit facilities. If a company has a bank loan or a credit facility, it may have to maintain a certain amount of cash on its balance sheet.

Another reason for listing unrestricted cash on the balance sheet is that it is readily available. If a company has money that can be used to meet its short-term obligations, it can pay vendors or suppliers or meet its debt obligations. On the other hand, if a company has restricted cash, it cannot be used to invest in growth or to meet working capital needs.