Bitcoin Miner Mara Holdings (Mara) Stock surpassed peers on Friday, even after its first quarter results missed Wall Street estimates, because the accent put by the company on cost is considered positive by analysts.
Jefferies analysts said that with Bitcoin BTC$103 183.60 The prices improving in the second quarter of this year and Mara focusing on more sustainable energy sources such as solar and flared gas centers, energy costs should drop in the coming quarters and help margins.
“Mara expands infrastructure in its 114 MW wind farm and has fully energized its 25 MW micro gas data center, which should both reduce electricity costs,” said analyst Jonathan Petersen in a note.
If the mining company continues to buy more sources of electricity, this would help the profitability of the company, wrote Petersen. “The continuous acquisition of electricity assets should further reduce energy costs, extend the margins and better prepare the company for the next reduction by half.” Peterson reiterated his conservation rating on the action, while bringing the price of lessons to $ 16 against $ 13.
Bitcoin Mining, formerly a very profitable company, has seen its beneficiary margins crash during the last bears market and even more after the recent reduction in half which reduced the awards by half. To worsen things, the rise in electricity costs for mining continued to afflict the margins.
This compression has forced most minors to diversify their business in other sources of income, including the accommodation of artificial intelligence (AI) and computer data centers (HPC). Mara was one of the few minors who were not immediately jumped in the AI sector, but rather focused on other diversification pathways, such as transaction income services, the mining pool, the purchase of bitcoin on the free market and the reduction of electricity costs via green energy sources.
The last point on the cost of lower energy seemed to have affected an agreement with the market.
HC Wainwright analyst Kevin Dede, said that is what separates Mara from her mining peers: “Comments last night clearly indicated that the company remains focused on the development of technology in its main vertical energy conversion … with a peeled eye on the driving of energy costs to zero.”
“We reshuffled this here in the distancing of Mara’s strategy against mining competitors migrating slowly or forcefully their mining business to tackle the opportunity of rapidly evolving HPC,” he said.
DEDE, which has a purchase and price rating objective of $ 28, also seemed to echo the feeling that Mara will be able to reduce costs by focusing on these types of energy sources.
“Our opinion because of this apart for the moment, we agree with the global objective of Mara to create opportunities by exploiting unused power or by improving the effectiveness of second-hand power,” he said.
Mara’s shares increased until 9% on Friday, while the FNB Coinshares Valkyrie Bitcoin Miners (WGMI) fell by approximately 0.3%.
Read more: Mara Holdings Cut to sell by Compass Point before income, citing cash burns
