Bitcoin Miner Marathon Digital Faces Risks Despite Rapid Growth
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Marathon Digital is a leading Bitcoin mining company that has grown rapidly, but it is still unprofitable and taking on debt to expand.
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Revenue is expected to more than triple through 2025 as Marathon scales up operations, but estimates are highly dependent on volatile Bitcoin prices.
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Marathon trades at a high valuation despite risks of rising mining costs after the 2024 Bitcoin halving event.
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The stock could keep rising if Bitcoin prices soar, but direct Bitcoin ownership is less risky than Marathon's capital-intensive mining business.
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Marathon is still speculative, so while gains are possible, investors should consider risks of mining costs and Bitcoin volatility before buying.