Disclaimer: I own 9 call options for Jan 19th 2024 purchased at 1.0367.
MARA just recently had their Q3 results drop and things are looking excellent. Aside from beating their EPS by 64%, net income and net profit margin are up 185% and 111% respectively.
Revenue was 97.8 million versus 12.7 million last year showing significantly growth even in the face of declining bitcoin prices, attributed to their hedging strategy – enabling them to reap the rises while insulating themselves from the falls in prices.
Quarter on quarter they are now producing 18% more bitcoin and are taking up 24% more of the share of rewards in their mining processes, due to them reinvesting more and more into buying mining machines.
The main reason I am bullish in this stock is because with increasing inflation and the bull run in bitcoin after breaking 36k USD, their assets are set to rise in value by 10-20% given the recent trend we are seeing with bitcoin. And that is after they’ve sold off 66% during the bullish run we saw in July/August and their new hedging strategy.
They are adopting new renewable energy plays that are only becoming more poignant with gas prices set to rise into 2024. I think even with their debt of 700m, they will continue to grow given the trend we’ve since with bitcoin prices prior to halving set to take place in 2024. Even so investors within having been buying shares (which although these are purchased months in advance prior to blackout) is a great sign of them believing that the company is on an upwards trajectory.
One major downside I heard from their earnings call was that in terms of creating new capital they are looking towards a strategy that incorporates both dilution of shares and selling bitcoin. That said I don’t think they will opt to dilute too much given that they currently hold 13,900 bitcoin and with an appreciation of even 1,000 in price would yield almost 14m, it’s very likely they will use the volatility we’re seeing to buy low and sell high to prevent market scares.
Nonetheless do your own research, but I do see an excellent strategy and growth path over the next year. Will keep you updated on if buy more calls or revert to puts.
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