MARA Holdings: If You Can’t Beat Hyperscalers, Partner With Them

Summary:

• I support the CEO’s decision to avoid independent AI/HPC hosting, reducing risks tied to low margins and rapid tech obsolescence once hyperscalers fully deploy their infrastructure in 2026.
• The company’s energy strategy, converting flared gas to electricity, significantly reduces power costs to 1 cent per kWh, aiming for over 1 GW capacity of low-cost energy.
• Recent acquisitions and facility upgrades are expected to increase computing power by 70% by late 2025, with potential operational cost reductions using its 2PIC tanks.
• Falling Bitcoin prices, ongoing share issuance, and negative sentiment toward non-mining expansions are some big risks to consider.
• Following the 30% decline in the share price, MARA’s low valuation ratios and strong growth prospects make this stock a speculative strong buy.

MARA Holdings, Inc. (NASDAQ:MARA) has seen its share price decline by over 30% following the release of Q3 earnings.

With the company planning to release more details on potential partnerships with hyperscalers in the upcoming quarters, I considered reviewing

Analyst’s Disclosure: I/we have a beneficial long position in the shares of MARA either through stock ownership, options, or other derivatives. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.

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