Marathon Digital Faces Uphill Climb As Bitcoin ETFs Offer Better Value

Marathon Digital Holdings (MARA) is no longer a good proxy for holding bitcoin since investors can now own bitcoin directly through spot ETFs.

The upcoming bitcoin halving event in 2024 will significantly increase mining costs for MARA, hurting profitability.

MARA is expanding operations, including new data centers, but faces margin pressure from higher energy and operating expenses.

MARA shares are trading at a premium valuation of over 9x the book value of its bitcoin holdings.

I give MARA a sell recommendation with a $16.69 price target due to increasing costs and competition from bitcoin ETFs.