MARA Holdings Inc MARA, a digital asset technology company engaged in mining cryptocurrencies, saw its shares close at $25.01 on Monday. That’s a whopping 29.92% daily gain following news of its Ohio power acquisition.
What Happened: MARA secured 152 megawatts (MW) of active power across three Ohio sites, with additional approvals for up to 220 MW, acquiring this capacity at an impressively low $270,000 per MW.
MARA's acquisition price is on the "low end of deals,” according to JPMorgan analyst Reginald L. Smith. The company managed to secure favorable economics.
MARA's self-mining portfolio already includes 600 MW across Texas and Nebraska. Smith emphasized that MARA's vertical integration strategy—owning its own mining sites rather than relying on colocation—enhances mining economics.
Smith estimates that MARA could add 10 EH/s with the newly acquired Ohio sites in the near term. The Las Vegas-based company could add another 15 EH/s by 2025 as additional capacity comes online.
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Why It Matters: Bitcoin's BTC/USD 37% rally to over $87,000 has helped MARA's stock climb 50% year-to-date, easily outpacing the S&P 500 and its mining peers.
However, Smith cautioned that mining profitability hasn't kept pace, with hashprice increasing only 13% due to rising network difficulty. Smith projects that Bitcoin would need to reach $115,000 to align mining profitability with the recent stock gains.
The acquisition-fueled rally has pushed MARA's stock price above key moving averages, including the eight, 20, 50 and 200-day simple moving averages, underscoring a bullish trend.
Chart created using Benzinga Pro
The MACD at 1.36 supports the bullish trend in place. However, the RSI of 74.53 indicates the stock might be overbought after Monday's jump.
Earnings could temper the stock’s momentum as investors scrutinize MARA's performance, Smith says.
What’s Next: MARA will report third-quarter earnings after the market closes on Tuesday. Analysts anticipate a loss of 26 cents per share on $151.67 million in revenue, according to Benzinga Pro data.
Monday's 30% MARA stock rally shows strong confidence in MARA's expansion efforts. Smith suggests the earnings call will reveal the critical details on whether these power moves translate into sustained profitability.
With MARA scaling its mining power and Bitcoin still climbing, investors await insights on whether these expansions will drive profitability.
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