Marathon Digital: The Bitcoin Miner Is Positioned For Big Growth

Investment Overview

As Bitcoin keeps surging, there are several proxy-plays to benefit from the big rally for the cryptocurrency.

For investors in equity markets, Marathon Digital (NASDAQ:MARA) is an attractive stock to consider. MARA stock has gone ballistic with rise in Bitcoin prices and has surged by 7437% in the last one-year.

I will not be surprised if the stock doubles from current levels of $40.

Let me talk about a key reason to be bullish on Marathon Digital.

Big Revenue Growth is Coming

As an overview, Marathon Digital is a Bitcoin mining company.

For the third quarter of 2020, Marathon Digital reported revenue of $835,184. Revenue growth on a year-on-year basis was 160%.

The important point is that the company had just 2,060 miners in September 2020.

However, the company has some big expansion plans. By the second quarter of 2021, the company is planning to deploy a total of 25,560 miners.

In other words, the total growth in miners will be 1100%. This comes at a perfect time when Bitcoin is surging.

Marathon Digital can choose to hold Bitcoin in its balance sheet or sell. In any case, the company stands to benefit from multi-fold growth in Bitcoin mining.

This explains why the stock has surged. However, as revenue growth accelerates in 2021 and in 2022, Marathon Digital stock is well positioned for further upside.

Conclusion

Marathon Digital is among the best crypto stocks. Even after the big rally, there is more scope for upside in the next few quarters.

Investors can consider exposure at current levels for proxy exposure to Bitcoin.