Marathon Digital is a tricky one that carries a good deal of risk.
That’s because its revenue depends on the direction of Bitcoin. Where Bitcoin travels, mining stocks like MARA are sure to follow.
Also, “The Fed and other central banks have been raising interest rates over the past year or so in an effort to tame soaring inflation, in moves that forced stocks and cryptocurrencies sharply lower in 2022. The hope now is that the U.S. central bank will cut rates, taking some pressure off risk assets,” says CNBC. That’s bullish for BTC, and for miners.
Helping, MARA just announced it produced 475 BTC in December, and a total of 1,562 BTC in Q4 2022. It also produced 4,144 BTC in 2022, a 30% year over year jump.
“As we enter 2023, we remain confident in our ability to scale Marathon into one of the largest and most energy efficient Bitcoin mining operations globally. We have thousands of miners ready to be energized over the coming months, which we expect to more than triple our current production capacity to approximately 23 exa-hashes by mid-year,” said Fred Thiel, Marathon’s Chairman and CEO.