TLDR
Contents
- MARA stock fell 7.56% over the past week despite JPMorgan raising price target from $18 to $19
- Company mined the most bitcoin for ninth consecutive quarter but had highest cost per coin at $72,600
- Institutional investor GAMMA Investing increased stake by 708% in Q1, buying additional 90,932 shares
- MARA produced 950 bitcoins in May with 38% increase over April performance
- Analysts maintain mixed ratings with consensus price target of $20.94
MARA Holdings has experienced a challenging week in the markets. The stock dropped 7.56% despite positive operational metrics and analyst attention.
The decline comes as JPMorgan raised its price target from $18 to $19. The bank maintained its neutral rating on the bitcoin mining company.
Cost Challenges Emerge Despite Production Leadership
MARA continues to lead in bitcoin production volume. The company mined the most bitcoin among JPMorgan’s coverage universe for the ninth straight quarter.
However, operational efficiency remains a concern. MARA posted the highest all-in cash cost per coin at approximately $72,600.
This compares unfavorably to competitor IREN. That company achieved the lowest cost per coin at just $36,400.
The cost disparity highlights operational challenges. MARA’s higher expenses could pressure margins if bitcoin prices decline.
MARA produced 950 bitcoins in May alone. This represented a 38% increase over April’s production figures.
The company won 282 blocks during the month. Its self-owned mining pool helps retain full block reward value.
JPMorgan analysts noted the strong Q1 performance across the sector. Four of five miners in their coverage reported record revenue and profits.
The industry generated $2.0 billion in gross profit. Gross margins reached 53% during the quarter.
Institutional Interest Grows Despite Stock Weakness
Institutional investors continue showing interest in MARA. GAMMA Investing LLC increased its stake by 708% in Q1.
The firm purchased an additional 90,932 shares. Its total holdings reached 103,776 shares worth $1.193 million.
Wellington Management Group also boosted its position. The firm increased its stake by 1,726.2% during Q4.
Other institutional moves included California State Teachers Retirement System. The pension fund increased its holdings by 2.9%.
United Advisor Group raised its stake by 64.5%. The firm now owns 51,007 shares worth $855,000.
Institutional ownership now stands at 44.53%. This represents growing confidence from professional investors.
Analyst coverage remains mixed on MARA. One analyst rates it a sell while four give hold ratings.
Five analysts maintain buy ratings on the stock. The consensus price target sits at $20.94.
Recent price target changes show varying opinions. HC Wainwright maintains a $28 buy rating.
Piper Sandler cut its target from $30 to $23. Rosenblatt Securities raised its target from $17 to $20.
Compass Point issued the most bearish view. The firm cut its target from $25 to $9.50 with a sell rating.
CEO Frederick Thiel sold 55,010 shares in May. The shares were sold at an average price of $15.00.
Director Douglas Mellinger also sold 3,000 shares. The stock was sold at $16.00 per share.
MARA opened Monday trading at $15.04. The stock trades with a market cap of $5.29 billion and beta of 6.61.
