Mara Holdings: An Undervalued Bitcoin Mining Powerhouse

PUBLISHED Mar 17, 2025, 1:02:10 PM        SHARE

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Mara Holdings, a leading Bitcoin mining company, has been drawing attention for its stellar Q4 performance and incredibly low valuation. Despite the broader market downturn and external pressures on Bitcoin-related stocks, Mara continues to showcase strong operational metrics and immense potential for long-term growth.

Stellar Q4 Results: A Testament to Operational Excellence

In Q4 2024, Mara achieved remarkable results:

  • Revenue Growth: Up by 37%, driven by higher Bitcoin mining output and rising Bitcoin prices.
  • Increased Hash Rate: Mara's hash rate soared to 53 EH/s, doubling from 24 EH/s in Q4 2023, solidifying its position as the largest Bitcoin miner by both market cap and hash rate.
  • Low Energy Costs: Mara’s cost of energy is under $0.04 per kilowatt-hour, positioning it among the most cost-efficient miners in the industry.
  • Bitcoin Yield: Delivered a stunning 62% Bitcoin yield, aligning with top-tier companies like MicroStrategy, but at a significantly lower valuation.

Valuation Metrics That Defy Logic

Mara stands out for its inexplicably low valuation metrics compared to peers:

  • Enterprise Value (EV) / EBITDA: Just 5.5x, typically seen in struggling companies rather than thriving leaders.
  • Market Cap / EBITDA: An even more attractive 3.75x.
  • EV / Bitcoin Dollar Gain: 4.5x, while the Market Cap / Bitcoin Dollar Gain is only 3x.

These ratios indicate a significant undervaluation relative to the company’s operational success and potential.

Innovative Financing and Strategic Growth

Mara’s growth strategy includes innovative use of convertible debt and ATM offerings:

  • Raised over $1.8 billion via ATM offerings and $2.2 billion through convertible bonds.
  • Invested heavily in Bitcoin purchases, operational sites, and renewable energy projects, including wind farms.

By prioritizing Bitcoin accumulation and long-term growth, Mara has managed to accrete shareholder value. As of today, each million Mara shares represent 97 Bitcoin, up from 60 Bitcoin at the end of 2023.

Overcoming Market Headwinds

Despite stellar results, Mara's stock remains suppressed due to external factors:

  • Broader market volatility and economic concerns, such as tariffs and low home transactions.
  • Bitcoin’s perception as a “risk-on” asset, despite its long-term potential as pristine collateral.
  • Extreme fear in the crypto market, reflected by a fear index of 10.

However, history shows that periods of extreme fear often precede market rebounds.

The Case for Mara Holdings

For long-term investors, Mara represents an unparalleled opportunity in the Bitcoin mining space. Its combination of operational excellence, strategic growth, and dirt-cheap valuation makes it a standout pick for those seeking exposure to Bitcoin and crypto.

By focusing on metrics like Bitcoin per share and optimizing operations, Mara is redefining what it means to be a sustainable and profitable Bitcoin miner. As the market stabilizes and Bitcoin regains its upward momentum, Mara is well-positioned to deliver outsized returns.

https://youtu.be/A04KoInaxRw?si=mouhcJEMHVsii4Rf

**POSITION UPDATE**

MARA, Buy

Marathon Digital...
Return: -5.90%


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