Bitcoin Miner Mara Holdings (Mara) stock outperformed peers on Friday, even after it Results in the first quarter Wall Street estimates, as the company’s focus on lowering costs is seen as positive as analysts.
Jefferies analysts said that in Bitcoin Btc$103,183.60 Price improvement in the second quarter of this year and the Mara dedicated to more sustainable energy sources such as solar and flared gas driven by data centers, power costs should go down to the upcoming dwellings and assist margins.
“Mara is expanding the infrastructure to the 114 MW wind farm and has fully strengthened the gas micro flared gas center, both of which should drive electricity costs,” analyst Jonathan Petersen said in a note.
If the mining firm continues to buy more of such electricity sources, it will help the company’s profitability, Petersen wrote. “Continued acquisition of electric assets is expected to further reduce energy costs, expand margins, and better prepare the firm for the next split.” Peterson reiterated his rating in stock, while raising the target price to $ 16 from $ 13.
Bitcoin’s mining, once a very visible business, has seen the revenue margins in the last bear market and more after a recent stop cutting the rewards in half. To exacerbate things, increasing power costs for mining continued to plague margins.
This squeeze forced most miners to diversify their business with other revenue sources, including hosting artificial intelligence (AI) and high-performance computing (HPC) data centers. Mara was among some miners who did not jump into the AI sector immediately, but instead focused on other forms of vary -I, such as Transaction Income Services, Mining pool, Buying Bitcoin In the open market and Lowering power costs by a green source of energy.
The last point about the lower cost of strength seems to hurt a chord on the market.
HC Wainwright’s analyst said Kevin Dede was this separating Mara from mining peers: “The commentary last night made it clear that the company remains focused on developing technology in the main vertical of converting power … with a peeled eye on driving energy costs to zero.”
“We are reunited here as Mara’s approach against mining competitors has been gentle or strongly moving their mining businesses to address the fast -emerging HPC opportunity,” he said.
Dede, with a purchase rating and a price target of $ 28, seems to also emit feelings that Mara will reduce costs by focusing on these types of electric resources.
“Our opinion about today for now, we agree with Mara’s excessive purpose to create opportunities by exploiting the unused power or improving the efficiency of the used power,” he said.
Mara’s sharing rose 9% on Friday, while Coinshares Valkyrie Bitcoin Miners ETF (WGMI) fell by about 0.3%.
Read more: Mara Holdings are cut to sell to Compass Point Leading the revenues, citing cash burn
