Newsletter Subject

Bitcoin Gains, but Marathon Digital (MARA) Investors Lose

From

investingchannel.com

Email Address

TheSpill@news.investingchannel.com

Sent On

Tue, Oct 1, 2024 04:31 PM

Email Preheader Text

Bitcoin Gains, but Marathon Digital Investors Lose Over 15,000 businesses worldwide accept Bitcoin p

[View in browser]( [The Spill Logo] BROUGHT TO YOU BY: [Logo]( Bitcoin Gains, but Marathon Digital (MARA) Investors Lose Over 15,000 businesses worldwide accept Bitcoin payments, including major companies like Microsoft, KFC, and Burger King. In the U.S., around 2,300 businesses accept Bitcoin. Yet, only 2% of the U.S. adult population has used Bitcoin to pay for real-world goods. Like it or not, Bitcoin is here to stay. And there is enormous growth potential. Despite all odds, the crypto OG has held near $60,000-$70,000 for most of 2024 after several years of double-digit gains and losses. Stability has attracted investors to adjacent plays, including Bitcoin miners like [Marathon Digital (MARA)](, hoping to capitalize on business growth and cryptocurrency appreciation. Our previous reviews don’t hide our disdain for the company as an investment. However, part of that rested on Bitcoin price volatility. If we assume a stable coin that appreciates in value, does that change our opinion? [-facebook-share]( [-twitter-share]( [-linkedin-share]( [-email-share](mailto:?body= https%3A%2F%2Finvestingchannel.com%2F%3Fp%3D632681?utm_medium=ic-nl&utm_source=122732 ) Brought to you by [Stansberry Research]( [Brace for a new dawn in U.S. stocks]( [Stansberry Research - Brace for a new dawn in U.S. stocks]( CNBC's Jim Cramer once said: "I learned a long time ago not to be on the other side of a Chaikin trade." Since Chaikin accurately predicted the 2012 Priceline collapse, the 2020 crash, and the 2022 bear market, over 1 million people have chosen to follow his Wall Street warnings. Today he's stepping forward with a new warning – one he's never shared with the hedge funds, banks, and brokerages he worked with over 50 years on Wall Street. "A new dawn is coming to the U.S. stock market," says Chaikin, who's traded through nine bear markets. "It's time to throw out the investment blueprint of the last decade and prepare for a massive shift." [Click here to access his new warning, and #1 stock recommendation.]( Continued... Marathon Digital’s Business As one of the world's largest publicly traded Bitcoin miners, Marathon has carved out a unique niche by marrying cutting-edge technology with a commitment to sustainable energy practices. The company operates a fleet of over 250,000 mining rigs spread across 13 data centers on four continents, capable of producing 31.5 exahashes per second. But what really sets them apart is their focus on clean energy. In an industry often criticized for its energy consumption, Marathon is leading the charge toward more sustainable mining practices. Take their Garden City, Texas facility, for example. This 200-megawatt powerhouse sits next to a wind farm, tapping into renewable energy to fuel its operations. Marathon Digital Holdings segments its business into the following areas: - Mining (93.8% of total revenues) - Includes Bitcoin production through the company's fleet of mining rigs. - Hosting services (6.2% of total revenues) - Provides colocation and managed services to institutional-scale crypto mining companies. Marathon's recent performance has been mixed. In Q2 2024, the company saw revenues rise 78% to $145.1 million compared to Q2 2023 but posted a net loss of $199.7 million, driven by a $148.0 million loss on the fair value of digital assets. In a strategic move, Marathon has shifted its treasury policy, now fully adopting a "HODL" strategy to retain all Bitcoin. This move reflects the company’s confidence in Bitcoin’s long-term value as a premier treasury asset. By August 31, 2024, Marathon held 25,945 Bitcoins, reinforcing this commitment. Financials [Financials] Source: Stock Analysis Marathon Digital’s fortunes rose alongside Bitcoin prices and its production. The company has enjoyed a small operating profit for the past year and a half. However, they have not generated positive cash flow from operations since Q4 2021. Usually, this would be a big red flag for us. However, they mark their Bitcoin holdings to market value, which impacts the P&L but doesn’t hit cash flow until they unload them. The problem is they need to raise cash to run the business as well as invest in CAPEX. So, they issue more stock, diluting current holdings rather than selling Bitcoins. In fact, the total shares outstanding have more than doubled since 2022. Yet, Marathon Digital only has $250 million in cash, which is less than its annual CAPEX. Plus, they burn roughly $115 million in cash from operations annually. This means shareholders can expect further dilution without an end in sight. Valuation [Valuation] Source: Seeking Alpha On paper, Marathon Digital’s P/E ratio at 18.5x isn’t too shabby. That’s better than peers, including [Coinbase (COIN)](, while fellow miner [Hut 8 (HUT)]( is 1/3rd the valuation. None of these companies generate cash from operations, except Coinbase, which makes them risky bets. Growth [Growth] Source: Seeking Alpha No one can deny Marathon Digital’s revenue growth. It blows away everyone else on this list. Yet, its inability to turn this into profits and cash flow is readily apparent. Profitability [Profit] Source: Seeking Alpha It might seem odd to see Marathon’s net income margin exceed its EBIT margin. However, higher Bitcoin prices raised the value of Marathon’s holdings, which didn’t impact its operating income. [An imminent reason to take another look at cryptos]( The SEC has been taking shots at the crypto space for quite a while now and things just went to a new level after it filed new lawsuits against the biggest exchanges in the United States. At the heart of the debate is this idea of what constitutes a security and what constitutes a commodity. Which is why I’m so excited about one crypto in particular. As I explain in this video alert, it’s backed by gold bars on a 1-to-1 basis. [Just click here now and the presentation will start playing automatically.]([Ad] Our Opinion 0/10 We still believe Marathon Digital is a dangerous investment. The company chose to raise capital by diluting shares rather than selling digital assets, a big gamble on the future of Bitcoin prices. Quite simply, you’re buying a questionable business model to gain exposure to Bitcoin prices. In our opinion, owning Bitcoins directly or through ETFs provides a better risk/reward. [-facebook-share]( [-twitter-share]( [-linkedin-share]( [-email-share](mailto:?body= https%3A%2F%2Finvestingchannel.com%2F%3Fp%3D632681?utm_medium=ic-nl&utm_source=122732 ) Proprietary Data Insights Financial Pros’ Top Bitcoin Stock Searches in the Last Month Rank Ticker Name Searches #1 [MARA]( Marathon Digital 86 #2 [MSTR]( Microstrategy 27 #3 [COIN]( Coinbase 7 #4 [RIOT]( Riot 4 #5 [HUT]( Hut8 1 #ad [Making Sense Of Your Money With The Juice]( News & Insights Just Spilled - [China’s Stimulus Sparks Alibaba (BABA) Surge: Time to Buy?]( - [Adding Color to the Investment Spectrum]( - [Experts’ Top 5 Utility Stock ETFs]( - [A $17.4 Trillion Investment Should Boost This Stock]( [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%3D632681?utm_medium=ic-nl&utm_source=122732 ) [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](

Marketing emails from investingchannel.com

View More
Sent On

08/12/2024

Sent On

08/12/2024

Sent On

06/12/2024

Sent On

06/12/2024

Sent On

04/12/2024

Sent On

04/12/2024

Email Content Statistics

Subscribe Now

Subject Line Length

Data shows that subject lines with 6 to 10 words generated 21 percent higher open rate.

Subscribe Now

Average in this category

Subscribe Now

Number of Words

The more words in the content, the more time the user will need to spend reading. Get straight to the point with catchy short phrases and interesting photos and graphics.

Subscribe Now

Average in this category

Subscribe Now

Number of Images

More images or large images might cause the email to load slower. Aim for a balance of words and images.

Subscribe Now

Average in this category

Subscribe Now

Time to Read

Longer reading time requires more attention and patience from users. Aim for short phrases and catchy keywords.

Subscribe Now

Average in this category

Subscribe Now

Predicted open rate

Subscribe Now

Spam Score

Spam score is determined by a large number of checks performed on the content of the email. For the best delivery results, it is advised to lower your spam score as much as possible.

Subscribe Now

Flesch reading score

Flesch reading score measures how complex a text is. The lower the score, the more difficult the text is to read. The Flesch readability score uses the average length of your sentences (measured by the number of words) and the average number of syllables per word in an equation to calculate the reading ease. Text with a very high Flesch reading ease score (about 100) is straightforward and easy to read, with short sentences and no words of more than two syllables. Usually, a reading ease score of 60-70 is considered acceptable/normal for web copy.

Subscribe Now

Technologies

What powers this email? Every email we receive is parsed to determine the sending ESP and any additional email technologies used.

Subscribe Now

Email Size (not include images)

Font Used

No. Font Name
Subscribe Now

Copyright © 2019–2025 SimilarMail.