“Compass Point Slashed Marathon’s Price Target to $ 9.50, Warning of Dilution and Premium Bitcoin Exposure.”, – WRITE: www.coindesk.com
“There’s Better Ways to get Btc Beta,” Analysts Wrote in the Research Note, Pointing to Marathon’s Hash Price, Now Below 5.5 CENTS, AS A SIGNAL OF DECLINING PROFITITY. At Current Operational Levels, Compass Point Estimates the Company Is Facing Significant Cash Burn that Could Could Lead to Shareholder Dilution.
The Bank Also Slashed Mara’s Price Target to $ 9.50 from $ 25, Suggesting More than 25% Downside from the Current Price Near $ 13.
Marathon’s Business Relies on Bitcoin Mining, A Process That Earns BTC in Exchange for Computing Power. However, as Mining Rewards Shrink and Energy Costs Persist, The Economics of the Business Model Have Come Under Pressure. Meanwhile, Compass Point Argues that Marathon Trades at a Premium to the Price of Bitcoin Itfcoin ITFAVORABLE SETUP FOR INVESTORS SEEKING EXPOSURE TO TO ASSET.
The DowNGrade Also Comes Amid A Broader Slump in High-Performance Computing (HPC) and AI Infrastructure Plays. Peer Companies Core Scientific (Corz) and Terawulf (WULF) have also UnderFerFormed Year-to-Date As Investor Enthusiasm Ai Has Cooled. Concerns Over Customer Concentration, Pricing Risks, and Slowed Capital Expenditures from Giants Like Microsoft Like Like Like Dragged Valuz Down, WitH HPC Sector Multiples Multiples to around 5x currently.
Still, Compass Point Noted Potential Tailwinds for the Sector in the Long Run, Including Rising Demand for AI Infrastructure and Capex Commitments from Cloud Providers. But for now, they argument marathon’s Fundamentals Remain Too Weak to Justify ITS Market VALUATION.
Mara is reporting earnings on May 8, Post-Market. The Stock Fell 25% This Year, While A Bitcoin Mining Etf, WGMI, Fell 37%.
Update (May 6, 16:27 UTC): Updates Headlines and Adds Mara’s Earnings Time.
Disclaimer: Parts of this Article Were Generated with the Assistance from AI Tools and Review by Our Editory Team to Enseure Accucy and Adherice Tour Standards. For more information, See Coindesk’s Full Ai Policy.
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