Jim Cramer is Right About This Bitcoin Stock

[View in browser]( [The Spill Logo] BROUGHT TO YOU BY: [Logo]( Proprietary Data Insights Financial Pros’ Top Bitcoin Stock Searches in the Last Month Rank Ticker Name Searches #1 [RIOT]( Riot 223 #2 [MARA]( Marathon Digital 71 #3 [SNOW]( Snowflake 43 #4 [COIN]( Coinbase 17 #5 [HUT]( Hut 8 1 #ad [Google CEO: This Will Be Bigger Than Electricity]( Brought to you by [Investors Alley]( [June 26 Deadline: The #1 Monthly Dividend ETF]( [Investors Alley - June 26 Deadline: The #1 Monthly Dividend ETF]( It's paying 161% bigger dividends than aristocrats, and tt's up 5.62% since making its newest announcement. If you add it to your portfolio before June 26, you'll secure a payout of $2.05 PER SHARE! [Click here now to learn more before it's too late.]( Jim Cramer is Right About This Bitcoin Stock People love to follow Jim Cramer’s calls, whether to follow his advice or watch him crash and burn. However, we agree with him about one stock - Marathon Digital (MARA). Many traders use this crypto miner as a proxy for Bitcoin prices. But is it an investible product? Here’s what we think. Marathon Digital’s Business One of the largest publicly traded miners, Marathon Digital operates large Bitcoin mining facilities at 11 facilities across three continents, the majority of which are in the U.S. [Operations] [Source: Marathon Digital May 2024 Investor Presentation]( Mining operations turn a profit based on a pretty simple formula: Profit = Mining revenues - infrastructure - personnel - energy Consequently, higher Bitcoin prices help the company, while higher energy prices hurt them. The company uses a combination of off-grid energy from landfill methan as well as other fossil fuels and some renewables. [Fleet] [Source: Marathon Digital May 2024 Investor Presentation]( Revenues are split into owned mining services (87% of revenues) and hosting services for other miners (13% of revenues). YoY, Marathon’s cost per hash rate per day, basically its mining efficiency, improved from $53.7 to $45.2. Our biggest issue is the indirect exposure to Bitcoin. You can now own Bitcoins rather easily, whether you hold the digital currency itself or an ETF. Miners come with a lot more uncertainty. Financials [Financials] Source: Stock Analysis Marathon Digital’s revenues have expanded as the price of Bitcoin has improved. And its margins look good… …but its cash from operations is negative. That number doubled from -$176.5 million in 2022 to -$315.7 million in 2023. We see this as income statement manipulation through non-cash items they use to reduce expenses. Don’t let them fool you. Look, how did the balance sheet go from $103.7 million in cash to $357.3 million while total debt halved from $783.5 million to $326.1 million? The total number of shares outstanding increased from 145.6 million to 242.8 million. If you look at the grid above, you’ll see just how much the company has diluted its stock over the years. Valuation [Valuation] Source: Seeking Alpha Neither Marathon Digital nor rival miners Riot (RIOT) or Hut 8 (HUT) are cash flow positive. That should tell you something. Any P/E measure is artificially inflated by depreciating assets over time and other accounting tricks. Adjacent companies like Coinbase (COIN) aren’t directly tied to the price of Bitcoin but profit from cryptocurrency transactions in general. Snowflake (SNOW) is simply a company that holds a lot of Bitcoins. Growth [Growth] Source: Seeking Alpha Revenue growth isn’t a problem for miners when expanding their mining footprint, and Bitcoin prices rise. Yet, the EPS growth can be deceiving as we noted above. Profitability [Profit] Source: Seeking Alpha It’s fascinating that Marathon Digital can have such amazing margins yet burn cash. No wonder their return on assets is negative. [Diversify Your Portfolio: Beyond Stocks]( Unleash the potential of your investments by exploring Alternative Assets! Real Estate, Private Equity, AI, NFTs… Discover new avenues and elevate your portfolio. [Sign up for The Alt for FREE today!]( Our Opinion 0/10 We’ve gotten even more bearish on this stock than in the past. The obvious income statement manipulation smacks of serious problems. Traders might love to play options on this company. But as for a real investment, we agree with Jim Cramer, just own Bitcoin instead. [-facebook-share]( [-twitter-share]( [-linkedin-share]( [-email-share](mailto:?body= https%3A%2F%2Finvestingchannel.com%2F%3Fp%3D618643?utm_medium=ic-nl&utm_source=119674 ) News & Insights Just Spilled - [Should You Hold Boeing (BA)?]( - [Unlock Financial Clarity with The Juice]( - [Financial Pros’ Top 5 ETFs]( - [Why Financial Pros Are Watching Salesforce (CRM)]( [News & Insights-facebook-share]( [News & Insights-twitter-share]( [News & Insights-linkedin-share]( [News & Insights-email-share](mailto:?body= https%3A%2F%2Finvestingchannel.com%2F%3Fp%3D618643?utm_medium=ic-nl&utm_source=119674 ) [We want to hear from you. Let us know your thoughts by clicking here]( [Ads] [InvestingChannel Logo](#) Follow us on: [Facebook Logo]( [LinkedIn Logo]( [Twitter Logo]( [Instagram Logo]( To ensure delivery of all emails, [allow us on your list](. Manage your subscriptions with our [preference center](. [Unsubscribe here.]( View our privacy policy [here](. Copyright ©2024 InvestingChannel. All rights reserved. 1325 Avenue of the Americas, Floor 27 & 28 New York, New York 10019 Disclaimer: This is not investment advice. This InvestingChannel, Inc., newsletter is for information purposes only and is based on opinion. Futures, forex, stock, and options trading are not appropriate for all investors. There is a substantial risk of loss associated with trading these markets. Losses can and will occur. No system or methodology has ever been developed that can ensure returns or eliminate losses. InvestingChannel, Inc., makes no representation or implication that using any of the methodologies or systems in this newsletter will generate returns or insure against losses. Investors should be cautious about any and all investments and are advised to conduct their own due diligence prior to making any investment decisions. [Link](