Yahoo Finance Marathon Digital Holdings, Inc. (NASDAQ:MARA) On The Verge Of Breaking Even
With the business potentially at an important milestone, we thought we'd take a closer look at Marathon Digital Holdings, Inc.'s (NASDAQ:MARA) future prospects. Marathon Digital Holdings, Inc. operates as a digital asset technology company that mines digital assets with a focus on the blockchain ecosystem and the generation of digital assets in United States. The US$3.8b market-cap company’s loss lessened since it announced a US$687m loss in the full financial year, compared to the latest trailing-twelve-month loss of US$349m, as it approaches breakeven. The most pressing concern for investors is Marathon Digital Holdings' path to profitability – when will it breakeven? In this article, we will touch on the expectations for the company's growth and when analysts expect it to become profitable.
See our latest analysis for Marathon Digital Holdings
Consensus from 3 of the American Software analysts is that Marathon Digital Holdings is on the verge of breakeven. They anticipate the company to incur a final loss in 2023, before generating positive profits of US$61m in 2024. Therefore, the company is expected to breakeven roughly 12 months from now or less. We calculated the rate at which the company must grow to meet the consensus forecasts predicting breakeven within 12 months. It turns out an average annual growth rate of 119% is expected, which is extremely buoyant. If this rate turns out to be too aggressive, the company may become profitable much later than analysts predict.
Given this is a high-level overview, we won’t go into details of Marathon Digital Holdings' upcoming projects, though, take into account that by and large a high growth rate is not out of the ordinary, particularly when a company is in a period of investment.
Before we wrap up, there’s one aspect worth mentioning. The company has managed its capital prudently, with debt making up 32% of equity. This means that it has predominantly funded its operations from equity capital, and its low debt obligation reduces the risk around investing in the loss-making company.
Next Steps:
This article is not intended to be a comprehensive analysis on Marathon Digital Holdings, so if you are interested in understanding the company at a deeper level, take a look at Marathon Digital Holdings' company page on Simply Wall St. We've also compiled a list of key aspects you should further examine:
Historical Track Record: What has Marathon Digital Holdings' performance been like over the past? Go into more detail in the past track record analysis and take a look at the free visual representations of our analysis for more clarity.
Management Team: An experienced management team on the helm increases our confidence in the business – take a look at who sits on Marathon Digital Holdings' board and the CEO’s background.
Other High-Performing Stocks: Are there other stocks that provide better prospects with proven track records? Explore our free list of these great stocks here.
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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.
