Marathon Digital Holdings, Inc. (MARA) Stock Jumps 12.2%: Will It Continue to Soar?

Marathon Digital Holdings, Inc. (MARA) shares rallied 12.2% in the last trading session to close at $48.89. This move can be attributable to notable volume with a higher number of shares being traded than in a typical session. This compares to the stock's 20% gain over the past four weeks.

The increase in share price can be attributed to improvingbitcoin pricesthis year. According to CoinDesk data,bitcoin price at present, is up 113.3% on a year-to-date basis.  

Marathon Digital Holdings is a digital asset technology company which mines cryptocurrencies primarily bitcoin. The company recently provided updates regarding unaudited bitcoin (“BTC”) production and miner installation for September 2021.

For the third quarter of 2021, Marathon Holdings produced 1,252.4 new minted bitcoins, representing 91% increase in production sequentially. In September 2021, the company produced 340.6 new minted bitcoins. The company’s total bitcoin holdings now stand at approximately 7,035 BTC with an estimated fair market value of $336.3 million.

The company also secured a new $100 million revolving line of credit with Silvergate Bank. The company can utilize this revolving line of credit for general corporate purposes pertaining to bitcoin mining operations, including the purchase of bitcoin mining equipment.

This company is expected to post quarterly earnings of $0.52 per share in its upcoming report, which represents a year-over-year change of +966.7%. Revenues are expected to be $75.05 million, up 8834.5% from the year-ago quarter.

Earnings and revenue growth expectations certainly give a good sense of the potential strength in a stock, but empirical research shows that trends in earnings estimate revisions are strongly correlated with near-term stock price movements.

For Marathon Digital Holdings, Inc., the consensus EPS estimate for the quarter has been revised 18.9% higher over the last 30 days to the current level. And a positive trend in earnings estimate revision usually translates into price appreciation. So, make sure to keep an eye on MARA going forward to see if this recent jump can turn into more strength down the road.

The stock currently carries a Zacks Rank 1 (Strong Buy). You can see the complete list of today's Zacks Rank #1 (Strong Buy) stocks here >>>>

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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.