MARA Holdings Soars 30% After Acquiring Ohio Power Supply

Shares Surge on New Power Capacity: MARA Holdings Inc MARA, known for its cryptocurrency mining operations, experienced a dramatic increase in stock price, closing at $25.01 on Monday. This represents a 29.92% gain following news regarding a power acquisition in Ohio.

Details of the Acquisition: The company has secured 152 megawatts (MW) of active power across three sites in Ohio, with potential approvals for an additional 220 MW. This acquisition was made at a remarkably low cost of $270,000 per MW.

According to JPMorgan analyst Reginald L. Smith, MARA’s price tag for this power is at the low end compared to other deals in the market, highlighting the company’s ability to negotiate favorable terms.

MARA already operates a self-mining portfolio that includes 600 MW across Texas and Nebraska. Smith noted that the company’s strategy of owning rather than renting mining sites enhances its overall mining economics.

With the new Ohio sites, Smith estimates that MARA could add 10 exahashes per second (EH/s) shortly, with an additional 15 EH/s expected by 2025 as capacity ramps up.

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The Significance of the Rally: The price of Bitcoin BTC/USD has surged over 37% to surpass $87,000, greatly boosting MARA’s stock, which has risen 50% since the start of the year, outpacing both the S&P 500 and its competitors in the mining sector.

However, Smith did express concerns about mining profitability not keeping up with stock price increases. The hashprice has only increased by 13% due to rising network difficulty. For profitability to catch up with stock gains, Smith estimates that Bitcoin would need to reach around $115,000.

The rally has pushed MARA’s stock price above key moving averages, including the eight, 20, 50, and 200-day simple moving averages, indicating a strong bullish trend.

Chart created using Benzinga Pro

The MACD at 1.36 continues to support the positive trend, although the RSI of 74.53 suggests that the stock may be overbought following Monday’s leap.

As MARA gears up for its earnings report, investors will closely examine these figures, as Smith highlights that upcoming earnings could impact market momentum.

Looking Ahead: MARA is set to announce its third-quarter earnings after the market closes on Tuesday. Analysts project a loss of 26 cents per share alongside revenues of $151.67 million, according to Benzinga Pro data.

The recent 30% rally in MARA’s stock indicates considerable investor confidence in the company’s expansion efforts. Insights from the earnings call will be crucial in determining if these power acquisitions lead to lasting profitability.

As MARA enhances its mining capabilities and Bitcoin values continue to rise, all eyes will be on whether these changes translate into financial success.

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