Bitcoin Miner Holdings (Mara )’s actions beat the companions on Friday, even after Wall Street’s results lost the results of Wall Street, since analysts consider that the company’s approach in reducing costs is positive.
Jefferies analysts said that with Bitcoin BTC$103,048.07 Price improvement in the second quarter of this year and Mara focusing on more sustainable energy sources, such as solar data and gas chopped centers, energy costs should be lowered in the next quarters and help margins.
“Mara is expanding the infrastructure in its 114 MW wind park and has completely energized its 25 MW micro camping data center, which should reduce energy costs,” said analyst Jonathan Petersen in a note.
If the mining company continues to buy more of these energy sources, it would help the company’s profitability, Petersen wrote. “The continuous acquisition of energy assets is expected to further reduce energy costs, expand the margins and better prepare the company for the next half.” Peterson reiterated his retention rating in the share, while raising the target price at $ 16 from $ 13.
Bitcoin Mining, once a very profitable business, has seen that its profit margins crash drastically during the last bears market and even more after the recent half of the middle that reduced the rewards in half. To make things worse, the increase in energy costs for mining has continued to affect margins.
This compression has forced most miners to diversify their business in other sources of income, including the lodging of artificial intelligence (AI) and high performance computer data centers (HPC). Mara was among the few miners who did not jump to the AI sector immediately, but focused on other routes of diversification, such as transactions income services, mining pool, purchase of Bitcoin in the open market and reduce energy costs through green energy sources.
The last point on the lowest energy cost seemed to have reached the market chord.
HC Wainwright analyst Kevin Dede said that this is what separates Mara from his fellow mining: “The comment lasts made it clear that the company is still focused on the development of technology in its vertical central energy conversion … with an eye described in the impulse energy costs to zero.”
“Let’s remark this here by distant Mara strategy against mining competitors migrating their mining businesses smoothly or bluntly to address HPC’s opportunity in rapid evolution,” he said.
Dede, which has a purchase rating and an objective price of $ 28, also seemed echoing the feeling that Mara can reduce the costs when focusing on this type of energy sources.
“Our opinion on that aside for now, we agree with Mara’s general objective to create opportunities exploiting unused power or improving the efficiency of used power,” he said.
Mara’s shares increased up to 9% on Friday, while the ETF of the Bitcoin miners of Coinshares Valkyrie (WGMI) has fallen around 0.3%.
Read more: Mara Holdings cut off at Compass Point before earnings, citing cash burning
