MARA Technical & Fundamental Analysis


Chart done on daily timeframe. Mara shares have enjoyed a year end rally as cryptocurrency markets begin their path to potential recovery. The high risk asset “Bitcoin” is up more than 100% in 2023, driving other related assets higher along with crypto related stocks. Those who traded markets back in 2020-2021 are very familiar with Mara, as it was one of the best performing mining stock at the time, moving to highs above 80.00. Now with crypto’s rally, many are wondering if Mara can climb back to see those highs again. 

Looking at its technicals, Mara is not currently displaying any signs of weakness, but the rally is becoming a bit vertical. Sharp rallies such as these can be quickly taken apart on sight of bad news, especially in high risk companies. Mara definitely falls in the “high risk” category, we’ll explain why in the fundamental analysis section. For now, the technical analysis suggests that there’s a high probability that Mara will enter a consolidation period and retest 20.00 as it cools down. If it can hold then the next target on its chart is 32.00-33.00.

Fundamental analysis:

Looking at its fundamentals, Mara’s annual revenue hasn’t shown consistency through the years, largely because their returns are highly correlated to crypto’s performance. 2020-2021 were great years of YoY revenue growth, but growth quickly pulled back as crypto markets sold off. Even when it did perform well on revenue, the company’s net income has struggled to stay positive, expect for last quarter when it surprised everyone with its first positive quarterly earnings in years. Mara’s balance sheet has a decent asset to lability ratio, but it’s on the lower end of what’s considered “healthy.”

All in all, Mara is a stock I would trade, not invest in. The company’s reliance on crypto to perform well leaves it vulnerable to changes in the crypto space. I don’t see any proprietary strategies to consider this a standout stock. The recent rally is based on short term market excitement, it can sizzle quickly. Trade levels on this, fundamentals don’t support a long term vision.