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Marathon: Big Opportunity in This Bitcoin Miner, Says Analyst

Bitcoin has broken through the $19,000 mark today and is currently hovering not far under the all-time high of $19,783.06, reached back in December 2017.

The leading cryptocurrency is up by 164% year-to-date, but alongside the gains, the narrative surrounding Bitcoin has changed this year. Bitcoin is increasingly viewed as a legitimate investment asset which could act as a hedge against inflation. It has even been given the title of “digital gold.”

Wall Street is coming on board, too. More and more companies are now allocating capital toward the purchase of Bitcoin. Others, such as PayPal and Square enable the buying and selling of cryptocurrencies on their platforms. Other Bitcoin-related investment opportunities are opening up, as well.

Which brings us to Marathon Patent Group (MARA).

On Monday, H.C. Wainwright analyst Kevin Dede initiated coverage on the Bitcoin miner with a Buy rating and $7.5 price target. Should the target be met, investors could pocket gains of 53% over the next months. (To watch Dede’s track record, click here)

Dede says Marathon’s “low-cost, self-governed energy and management creates an enviable position among leading North American bitcoin miners.” The analyst views the company as a leader in “the next wave of hash rate enhancing bitcoin miner deployment.”

Bitcoin mining is a notoriously energy consuming endeavor. Marathon, though, has purchased over 20,000 Bitmain S19 Pro Antminers, “arguably the most power-efficient mining machines now available,” and has also secured a location for the mining operation which comes with “low-cost power and all-in management fee of $0.034 kWh.”

The Montana based operation should be up and running by July next year and should set Marathon up to “deliver as much as 1.5% of the entire bitcoin network hash.” (In layman’s terms: the computing power required to secure the network).

Dede believes Bitcoin’s newfound legitimacy could see Marathon “rising through the crypto fog of misunderstanding” and views the company as a viable investment due to several reasons. Amongst these is the “large scale, wholly controlled mining facility with locked-in low cost power and management fees,” and a top-notch team led by a “highly experienced CEO adept at maneuvering within financial markets.”

Additionally, Marathon has established partnerships with Beowulf Energy to supply the requisite power and Two Point One (2P1) to take care of installation, operation, and fleet management.

These “structured partnerships,” says Dede, could boost Marathon's power usage to “beyond anything seen in North American crypto mining in delivering power at a rate approaching more than 5% of the entire 9.6GW global bitcoin mining network power consumption.”

Some stocks fly under the radar, and MARA is one of those. Dede's is the only recent analyst review of this company, and it is decidedly positive. (See MARA stock analysis on TipRanks)

To find good ideas for stocks trading at attractive valuations, visit TipRanks’ Best Stocks to Buy, a newly launched tool that unites all of TipRanks’ equity insights.

Disclaimer: The opinions expressed in this article are solely those of the featured analyst. The content is intended to be used for informational purposes only. It is very important to do your own analysis before making any investment.