Marathon Digital (MARA) Post-earnings Analysis
Chart done on hourly timeframe. Marathon Digital reported their fourth quarter earnings earlier today and numbers exceeded expectations across the board. The company reported a surge in revenue for the quarter to $156.8M vs. the $148.8M estimate, and net income came in at 66 cents a share, finally moving the company into positive profit territory. MARA’s investment in mining equipment and advancement of its technology helped it boost its Bitcoin mining abilities significantly year over year from 1,562 in the fourth quarter of last year to 4,424 this quarter. Efficiency also improved by roughly 20%, making their earnings results stellar all around. Despite the earnings beat, however, shares of the company tumbled from their highs in after-hours trading. This could be because the price was already baked in to the market given the fact that shares have nearly doubled just in the last month leading up to earnings. Nonetheless, with Bitcoin trading near all time highs, and excitement around crypto coming back, MARA still has a fighting chance of reversal back up and pushes back towards the 35.65 resistance.
Keep in mind MARA and other crypto related companies will likely always rely on crypto markets for their sentiment so if investors turn pessimistic on Bitcoin again then they will likely do the same towards MARA and its likes.