Marathon Digital Holdings (MARA) Pre-earnings Analysis

Marathon Digital Holdings

Chart done on daily timeframe. Marathon Digital has taken its investors on a roller coaster ride over the last 12 months with massive price swings from lows of $8 to highs of $34, but this is not unusual behavior for companies involved in the crypto space. The asset technology company focuses on the blockchain ecosystem and generation of digital assets, which ties directly with crypto, making their price susceptible to the crypto market. The rise in Bitcoin since the start of 2024 gave MARA a boost, but their last earnings miss scared investors off the year’s highs. Now they’ll have a chance to potentially impress investors this time around, and since their stock has come down nearly 50% in the last three months, they might have a chance at an earnings boost if they meet expectations. MARA posted its first profitable year in the last seven years in 2023, which automatically makes it stand out amongst other miners who aren’t profitable. If they can maintain that positive outlook in 2024, then they might excite crypto savvy investors. 

Option chain analysis:

MARA’s option chain that expires on May 17th 2024 (Mid month) currently reflects an implied volatility reading of 132%, which translates to about a $3.72 move from the underlying stock. The direction of that move will depend on the earnings results and call.