5 Red Flags for Marathon Digital Holdings' Future
Marathon Digital Holdings (NASDAQ: MARA) stunned many investors last year when it transformed itself from a patent-holding company to a Bitcoin (CRYPTO: BTC) mining one. Instead of leveraging its patents to generate more revenue from licensing deals and litigation, Marathon placed a long-term order for more than 100,000 high-end Application-Specific Integrated Circuit (ASIC) miners from Bitmain. Essentially, by investing in ASICs the company narrowed its focus solely on Bitcoin mining.
Marathon held 126 Bitcoins at the end of 2020. This March, it bought another 4,813 Bitcoins at an average price of $31,168 each. It continued to expand its mining fleet to 31,000 active miners at the end of November, and its total Bitcoin holdings hit 7,649.1 for a market value of $437.4 million at the end of the month. Marathon expects to expand its fleet to 133,000 active miners by mid-2022.
Analysts expect Marathon's revenue to increase from just $4.4 million in 2020 to $186.2 million this year. Next year, they expect its revenue to soar 290% to $725.3 million.
Source Fool.com
