Will This Crypto Stock Explode Soon?
So much for joining me for another video in this video were going to talk about marathon digital ticker symbol. There is m a r a a couple. Key developments recently has caused this stock to drop right around 30 over the past month, but based on some new analyst recommendations and ratings. This stock has some pretty big upside over the next 12 months and, like i said, theyre down 35 from recent highs. Now bitcoin is down today was down right around 4 as of making this video, but this particular stock marathon digital was down almost 10 today. But why thats? What were going to talk about in this video and then its up to you to decide whether or not you think this is a buying opportunity or not? Obviously, there are risks with any stocks you invest in in the stock market and there could be more pain ahead in this stock, but lets jump right in lets talk about the recent dips and why these analysts think that this offers an attractive price point right now. So the first reason that marathon digital has fallen. They are raising money to help with the acquisition of more bitcoin miners. The company announced an upsized 650 million dollar convertible senior notes offering for which investors seemed to be not so excited just based on the sheer size of that offering and marathon digital at the time being around a seven billion dollar company heres. What an analyst from b riley lucas pipes has to say about this, and, needless to say, hes not overly concerned for marathon, specifically the offering substantially de risks the capital requirements for the build out to 13.
3 x hash over the course of the next nine months. We estimate capital needs of less than 500 million dollars an amount. The company comfortably surpasses, with its cash on hand, revolver capacity and now the proceeds from the upside convertible bond offering well. The analyst feels this development might have added some initial selling pressure on the stock. He is more perplexed by what seemed to be the other reason, accelerating the decline the company disclosed that has been subpoenaed by the sec for info regarding the build of its data center in hardin montana. Specifically, the investigation relates to marathons distribution of six million shares of restricted common stock to finance. The development pipes thinks the sharp correction, which wiped off roughly 2.1 billion dollars in total value is starkly out of context for an information subpoena relating to transactions. When the company was at a completely different stage of its life cycle at the time of the related event, marathon, digital was only worth about 200 million dollars. Whether the connection between the size of market cap and the violation of security laws is valid or not. The analyst thinks the market may have overreacted to the disclosure and he would take advantage of the weakness in shares. As such pipes maintains his buy rating on mara shares, along with a 92 dollar price target, investors could be sitting on gains of right around 85. If pipes is right, but what do the analysts have to say overall about marathon digital right now, after this drastic fall? This is a strong buy based on three recent ratings on the stock, with an average upside of right around 38 overall, with a price target of just over 68 dollars.
But again, lucas pipes is coming in with that high value of 92 dollars and there is a low range of 48 dollars as well, which would represent a slight three percent downside uh, but that rating was uh reiterated right around two months ago. So guys, please. Let me know how you feel about this space in general. As i said, bitcoin is down trading under sixty thousand dollars down right around four percent over the past 24 hours, but uh i want you, i want to get your guys opinion. Do you think that this is a time for bitcoin to fall further or are they were gon na recover and get back up to that almost 70 000 per bitcoin? But if, if bitcoin falls pretty far back into the 30s or 20s, or something like that, it could uh wreck some habit on stocks like marathon digital, like clean spark like riot like bt, bt or other stocks that weve talked about in the past. But please, let me know if you like this play, if you like marathon digital right now, let me know down in the comments or if you disagree and you think theres a better opportunity out there, whether its in this space or not im hearing paypal is a Fantastic opportunity as well, that could be one that i talk about in the near future, but guys, thank you so much for joining me for this video.