Why Analysts Are Bullish on MARA Holdings (NASDAQ:MARA) Stock
MARA Holdings (MARA) operates as a Bitcoin (BTC-USD) miner and as such it is a popular option to gain exposure to cryptocurrency without buying digital assets. For the company’s business model to work, MARA requires the price of Bitcoin to be substantially higher than its cost of approximately $56,000 to expand its profit margins.
As such, the rise in the world’s largest cryptocurrency’s value is directly beneficial to the company’s financial performance. When the market price of Bitcoin increases beyond the miners’ production costs, they can sell their Bitcoin holdings at a higher margin, thereby increasing their profitability. Lower interest rates are likely to help risk assets such as Bitcoin. As such, MARA and other…
