Marathon Digital Holdings (MARA) is a Bitcoin mining company that, according to specialist Marc Gerstein, is a "sleeping giant" with great potential. Unlike MicroStrategy (MSTR), which only accumulates Bitcoin, MARA combines the purchase and retention of Bitcoin with its production through mining.
Why is MARA an attractive investment?
Gerstein highlights several reasons why MARA is a trustworthy investment:
* "Full HODL" strategy and market undervaluation: Despite owning a significant amount of Bitcoin, MARA's shares trade at a slight discount compared to the value of its BTC holdings. This suggests that the market has not fully recognized its true value, making it a buying opportunity.
* Energy efficiency: Bitcoin mining consumes a lot of energy, but MARA has managed to drastically reduce its electricity costs. It achieves this by locating its mining centers directly with renewable energy producers and by harnessing energy sources that would otherwise be wasted.
* Vertical integration: MARA has transitioned from a light asset mining model to owning and controlling a significant portion of its mining sites. This allows it to control the entire Bitcoin production chain, improving efficiency and mitigating risks.
* Bet on Artificial Intelligence (AI): The company is exploring new revenue sources by offering its data centers for hosting AI operations. This diversifies its income and positions it in a growing market.
Risks and Opportunities
Although investing in MARA carries risks such as Bitcoin price volatility and mining costs, its focus on operational efficiency, diversification, and its foray into AI positions it favorably. Gerstein concludes that MARA is an undervalued opportunity, with the potential to outperform the market as investors recognize its unique business model.
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Source: Criptonoticias
