MARA Stock Jumps 30% on Ohio Power Play Ahead of Q3 Results – MARA Holdings (NASDAQ:MARA)

MARA Holdings Inc MARAA digital asset technology company engaged in cryptocurrency mining closed its shares at $25.01 on Monday. That’s a whopping 29.92% daily gain following news of Ohio’s power grid takeover.

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

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

MARA’s self-mining portfolio already includes 600 MW in Texas and Nebraska. Smith emphasized that MARA’s vertical integration strategy – owning its own mining sites rather than relying on colocation – improves the economics of mining.

Smith estimates that with the newly acquired Ohio locations, MARA could add 10 EH/s in the near future. The Las Vegas-based company could add another 15 EH/s by 2025 as additional capacity comes online.

See also: Michael Saylor’s MicroStrategy shares hit a 24-year high, posting their biggest rise since the dot-com bubble

Why it matters: Bitcoin‘S BTC/USD The 37% rise to over $87,000 has helped MARA shares rise 50% year-to-date, significantly outperforming the S&P 500 and its mining peers.

However, Smith warned that mining profitability has not kept pace and the hash price has only increased by 13% due to increasing network difficulties. Smith predicts that Bitcoin would need to reach $115,000 for mining profitability to match recent stock gains.

The acquisition-fueled rally has pushed MARA’s stock price above key moving averages, including the 8-day, 20-day, 50-day and 200-day simple moving averages, highlighting an uptrend.

Chart created with Benzinga Pro

The MACD at 1.36 supports the existing uptrend. However, the RSI of 74.53 suggests the stock may be overbought after Monday’s rise.

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

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

MARA stock’s 30% rally on Monday shows strong confidence in MARA’s expansion efforts. Smith expects the earnings release to reveal key details about whether these power moves translate into sustained profitability.

As MARA expands its mining power and Bitcoin continues to rise, investors await insights into whether these expansions will increase profitability.

Read more:

Image: Shutterstock