MARA Shares Up 30% on Ohio Power Play Ahead of Third Quarter Earnings – MARA Holdings (NASDAQ:MARA)

MARA Holdings Inc MARAa digital asset technology company that mines cryptocurrencies saw its shares close at $25.01 on Monday. That’s a whopping 29.92% daily gain following news of their Ohio power acquisition.

What happened: MARA secured 152 megawatts (MW) of active power at three Ohio sites with additional approvals for up to 220 MW, acquiring this capacity for an impressively low $270,000 per MW.

MARA’s purchase price is at the “low end of deals,” according to JPMorgan analyst Reginald L. Smith. The company managed to secure a favorable economy.

MARA’s self-extraction portfolio already includes 600 MW across Texas and Nebraska. Smith emphasized that MARA’s vertical integration strategy – owning its own mine sites rather than relying on co-location – improves mining economics.

Smith estimates that MARA can add 10 EH/s with the newly acquired Ohio sites in the near term. The Las Vegas-based company may add another 15 EH/si by 2025 as additional capacity comes online.

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Why it matters: Bitcoin‘s BTC/USD The 37% rally to above $87,000 has helped MARA’s stock climb 50% year-to-date, easily outperforming the S&P 500 and its mining peers.

However, Smith cautioned that mining profitability has not kept up, with the hash price only increasing by 13% due to increasing network difficulties. Smith expects Bitcoin to reach $115,000 to align mining profitability with recent stock gains.

The buying-driven rally has pushed MARA’s share price above key moving averages, including the eight-, 20-, 50-, and 200-day simple moving averages, underscoring a bullish trend.

Chart created using Benzinga Pro

MACD at 1.36 supports the current bullish trend. However, the RSI of 74.53 indicates that the stock may be overbought after Monday’s jump.

Earnings could dampen the stock’s momentum as investors scrutinize MARA’s performance, Smith says.

What’s next: MARA will report third-quarter earnings after the market closes Tuesday. Analysts expected a loss of 26 cents a share on $151.67 million in revenue, according to Benzinga Pro data.

Monday’s 30% MARA stock rally shows strong confidence in MARA’s expansion efforts. Smith suggests that the earnings call will reveal the critical details of whether these power moves translate into sustained profitability.

With MARA scaling its mining operations and Bitcoin still rising, investors await insight into whether these expansions will drive profitability.

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