Summary MARA Holdings is a dominant bitcoin miner rapidly expanding into AI and HPC, aiming to diversify revenue and reduce reliance on Bitcoin. Recent financial results were exceptional, with revenue up 64% and a swing to strong profitability, driven by Bitcoin price appreciation and large BTC holdings. Ongoing dilution and debt-funded growth have pressured the stock, but operational efficiency and strategic partnerships support a bullish outlook. I rate MARA a strong buy with a $25 target, as AI/HPC diversification is underappreciated and offers significant upside beyond core mining operations. MARA Holdings ( MARA ) is a bitcoin miner power play — one of the largest by operational capacity and BTC holdings. I think it is a company that can't be sidelined if you favor the bitcoin mining landscape as an investment. Its performance often sets the tone for the entire industry. Despite this, MARA is positioning itself not only to sustain dominance in mining but also to become a global digital infrastructure business, with its significant investments in the sphere of AI and HPC. Moving beyond its dependency on Bitcoin allows MARA to diversify. If HPC and AI computing succeed, the company could see significant financial upside — along with an improvement in its stock price. The stock is highly volatile, experiencing sharp swings whenever Bitcoin becomes more turbulent or when sentiment shifts around the industry or broader market. MARA Holdings also falls into the interest-rate-sensitive category; thus, it is not surprising that its performance often correlates with the Russell 2000 small-cap index. MARA is a rapid-growth stock that frequently dilutes investors to raise cash. This adds pressure on the stock price — and that's why many people prefer trading it rather than holding it. However, I think that at current valuations, and considering the extremely positive outlook for Bitcoin and MARA itself, I rate it as a strong buy with a $25 price target over the next 12 months, implying more than 50% upside. FQ2 2025: Massive Double Beat Backed By Bitcoin Surge On July 29, MARA disclosed its FQ2 2025 results. It was a phenomenal quarter, as the bitcoin miner strongly beat analyst expectations with revenue increasing to $238.5 million, up 64% year over year, and net income of $808.2 million — or $1.84 per diluted share — a sharp reversal from a net loss of $199.7 million, indicating ($0.72) per share a year prior. To be fair, it was also a strong quarter for all BTC miners using the HODL strategy. Under FASB rules, to record a profit or loss on bitcoin holdings, companies must use the prior quarter's closing price from reliable sources. On June 30, BTC closed at about $107,000 , compared to $82,000 on March 31 — a $25,000 increase that significantly boosted results, as MARA held 49,951 bitcoin in its treasury at quarter-end. MARA now holds a total of 50,639 BTC, according to its latest report. If bitcoin continues to appreciate over the next year, MARA could benefit both from mining revenue and from realized gains on its treasury. It's a major upside potential for HODLers. MARA Leads Bitcoin Miners By BTC Holdings (Bitbo.io) Nevertheless, the company reported a massive 170% increase in bitcoin holdings at quarter-end, up from about 18,500 BTC a year ago. It is important to note that MARA can mine approximately 670 BTC per month at the midpoint; therefore, more than 23,000 BTC were acquired through market purchases over the past 12 months to boost its treasury. In July, MARA closed an upsized 0% convertible note of $950 million and raised $319 million through ATM equity programs. Despite its strong liquidity, the company continues to rely on debt-fueled instruments and equity offerings to finance rapid growth or expand BTC holdings through market purchases. I think this ongoing dilution has been the most frustrating issue for investors and is the key reason the stock has underperformed the S&P 500 this year. MARA Holdings also reported a remarkable increase in adjusted EBITDA to $1.2 billion, up 1,093% year over year from a loss of about $125 million. These are not typical numbers in the market; they indicate massive growth. The company is heavily focused on operational efficiency. Management reported that its energized hashrate rose 82% year over year to 57.4 EH/s — the highest in company history. Fleet efficiency also improved to 18.3 J/Th, a 26% YoY upside. Lastly, the company outlined its key strategic outlook. MARA is gradually evolving into a digitally oriented energy business while leveraging AI infrastructure beyond pure crypto mining. The company has become asset-heavy, with 70% ownership of its capacity. It has also announced strategic partnerships with Google-backed TAE Power Solutions and Pado AI, mainly targeting the AI and HPC landscape. MARA's goal is to reach 75 EH/s by year-end, which would make it more dominant than ever. Diversification Into AI And HPC Is Not Priced In And Should Drive Upside I think diversifying its business model and shifting into AI and HPC will work out extremely well for MARA. We have already seen examples in the bitcoin mining space where companies have moved from being pure BTC plays to a mix of crypto, AI, and HPC. Those that adopted a diversified model — such as Iris Energy and Cipher Mining — have significantly outperformed traditional miner CleanSpark, which remains heavily focused on bitcoin. Don't get me wrong, I don't think all miners should suddenly pivot into AI instead of strengthening their core mining operations. However, diversification and reduced dependency on a single asset are usually rewarded by the market, which is why I think MARA's shifting outlook is not yet priced in. MARA Stock Performance Compared To Peers (Google Finance) Over the past month, MARA Holdings has outperformed only CleanSpark, a pure bitcoin miner. Both CIFR and IREN have done far better, mainly driven by optimism around AI and HPC. I think it's only a matter of time before the market starts pricing in MARA's potential from a non-crypto mining perspective. Looking Purely At Valuation and Growth, It's Hard To Find A Reason Not To Buy I think MARA Holdings is an undervalued company and presents a compelling long-term investment opportunity. The company is currently trading at a trailing-twelve-month P/E of 9.27 — more than 60% below the sector median. At a PEG of 0.11, MARA is 88% cheaper than the average peer in the space, indicating significant undervaluation. Of course, to justify its valuation, MARA must maintain its future growth projections — but it is so undervalued that even with a slower growth, it would still be significantly attractive on a PEG basis. MARA: Yearly Revenue (Seeking Alpha) Since 2022, MARA Holdings has been doubling its top line year over year. With Q2 reported, the company has already exceeded FY2024 revenue by more than $100 million. It's truly an exceptional growth story. Other growth-related metrics, compared to the sector median, also look phenomenal: Metric MARA Sector Median Revenue Growth ((FWD)) 50.79% 7.56% EBITDA Growth (YoY) 97.94% 9.91% EPS Diluted Growth (YoY) 85.33% 11.03% ROE Growth (YoY) 2.64% (4.33%) CapEx Growth (YoY) 42.11% 6.14% MARA Holdings is an intriguing growth story, heavily invested in capital expenditures and further expansion into BTC mining as well as the AI and HPC landscape. Nevertheless, MARA is expected to grow its top line by more than 50% next year, while EBITDA rose about 98% year-over-year. The bottom line increased by 85.33%, nearly 8x higher than the sector median. Putting all these phenomenal numbers aside, MARA also reported a 2.64% growth in return on equity, while the average peer is still struggling to generate a positive return. EV/EBITDA stands at 7.66, compared to the sector median of 17.40. The price-to-book ratio is 1.15, about 75% more attractive than peers. From a fundamental standpoint, MARA Holdings appears significantly undervalued. For someone considering a bitcoin miner, I don't see how other pure BTC miners could rally without MARA. It is a truly compelling long-term investment, especially for investors seeking greater BTC exposure. Supporting The $25 Price Target As of mid-trading on August 19, MARA was range-bound between $15.50 and $16.00. That is around 56% below my expected $25 price target for the next 12 months. Sentiment toward pure BTC miners is weak, while BTC HODL companies, diversified miners, and AI-focused plays or pure Bitcoin treasury companies — such as Strategy — are gaining more attention and trading at a premium. At current valuations, MARA's Bitcoin holdings alone make up nearly 97% of its total market capitalization (50,639 coins at $115k equal $5.82 billion versus a market cap of around $5.96 billion). Adding its $100 million cash reserve brings it almost to 100%. This points to massive undervaluation: by purchasing the stock, you essentially get the mining business for free — and it's profitable. This also shows why I think none of the AI and HPC potential is priced in. The downside appears limited, and such low valuations rarely occur. We should also consider that in a typical month, MARA mines around 690 BTC. At the price of 115k per coin, that equals about $80 million. The company plans to keep expanding its BTC treasury, which should raise its floor price, even if BTC trades in a range and does not see a sharp decline. Despite this, MARA is running its business effectively and has been steadily reducing mining costs. As reported in Q2 2025, costs have fallen 47% over the past 10 quarters. As a result, the company disclosed that its energy cost to mine a single coin is $33.7k — among the lowest in the sector: Purchased Energy Cost / BTC of $33.7K, which we believe to be among the lowest in the sector MARA: Cost To Mine Decreased ( MARA Holdings, Investor Relations) MARA Holdings is a growth company, and investors should be satisfied with its aggressive top-line expansion without worrying too much about bottom-line figures. As a bitcoin miner, it remains highly dependent on the underlying crypto asset — as long as BTC remains volatile, so will MARA. The shift from pure mining activity to AI and HPC will help diversify the business. At a high single-digit P/E, the company looks incredibly undervalued. Trading at approximately 16x P/E — still nearly half the sector median — would be enough for the stock to reach my target. MARA Holdings experiences significant swings both ways, but with strong BTC demand and the cryptocurrency trading just 7% below its all-time high, I see more tailwinds than risks. I am being conservative with my $25 price target, even though it suggests more than 50% upside over the next year. At current valuations, you essentially get the mining business for free, without pricing in any positive future outlook for AI and HPC — areas the market typically rewards with a premium. MARA can perform well even if BTC trades in a range, steadily improving both its top and bottom lines. From a fundamental perspective, I see MARA as a great long-term opportunity for investors. Key Risks And Concerns Ahead Despite trading at such undervalued levels, there are some key risks and concerns that could potentially weigh on the stock price in the near term. As it is highly correlated with BTC movements, a sharp decline in the crypto price could drag MARA Holdings down with it. To those who are not experienced with this landscape, miners are usually considered a leveraged play; therefore, if Bitcoin drops by 3% to 5%, MARA would likely fall twice as much. I think MARA investors should recognize that continued dilution to support fast-paced growth is likely. Unless the FED reduces high-interest rates, I think that equity dilution may remain management's primary option for securing additional liquidity. Any announced ATM offering could trigger a double-digit decline. Operational disruptions also present risk. Adverse weather, unforeseen disruptions, or equipment malfunctions could impact BTC production and slow AI expansion. Lastly, with an already saturated range of BTC-related investments, investors may opt for alternatives such as Bitcoin ETFs and divert capital away from mining stocks. While markets can remain irrational, asymmetrical opportunities are often rewarded — and this seems to be the case for MARA. Conclusion: MARA Holdings Is A Strong Buy — Hyper-Growth You Can't Sideline MARA Holdings is a dominant name in the bitcoin mining industry. As the second-largest BTC holder in the world after Strategy, the company represents a compelling investment opportunity for those seeking a hyper-growth stock with limited downside potential. The bitcoin miner is profitable, and with its ongoing diversification into AI and HPC, it will likely become more stable and less dependent on BTC volatility. This should unlock a new segment of investors who prefer a more reliable and diversified business model. Assigning a conservative 15x multiple to MARA's valuations supports my $25 target, implying over 50% appreciation in stock price over the next 12 months. The stock is undervalued, and the current price point provides an attractive entry for significant long-term gains. I think MARA is a strong buy with a $25 price target — based on growth trajectory and undervalued fundamentals, it's hard to find reasons not to consider this opportunity. 13 analysts suggest a one-year average price of $23.87, which defines about 54% growth. I think if the market favors bitcoin miners over the next year, MARA's massive BTC holdings position it for strong upside. Historically, the company has made major moves in both directions, and with the current pullback, I think MARA could is well-positioned for a rebound.
