MARA stock surges 6.86% after securing $200 million credit line

• MARA Holdings secured a $200 million credit line, leveraging cryptocurrency assets for financing.
• Macquarie’s “outperform” rating suggests a 50% valuation increase for MARA due to AI and HPC initiatives.

In a significant development, MARA Holdings[MARA], the largest publicly traded Bitcoin [BTC] miner on Wall Street, has secured a $200 million line of credit.

This credit facility, backed by a portion of the company’s cryptocurrency holdings, pinpoints the increasing trend of leveraging digital assets for corporate financing.

MARA sell-offs

Adding to this narrative, MARA’s director, Douglas K. Mellinger, recently sold 1,000 shares of the company’s common stock for a total of $16,770, following a structured trading plan.

This latest move followed MARA Holdings’ earlier decision to invest $249 million in BTC. This move solidified its position in the cryptocurrency market.

For those unaware, in August, the company executed a successful $300 million offering of convertible senior notes. A majority of these proceeds were earmarked for additional Bitcoin acquisitions.

 As of the latest update, MARA stock is the second-largest publicly traded BTC holder, just behind MicroStrategy.

The link between MARA and Bitcoin

According to Bitbo data, MARA possessed approximately 0.12% of the total Bitcoin supply, equating to nearly 26,000 tokens, valued at an estimated $1.8 billion.

Source: treasuries.bitbo.io

This robust asset base not only highlights MARA’s strategic commitment to cryptocurrency, but also reflects the growing trend of institutional investment in Bitcoin. 

As of the 17th of October, MARA stock saw its stock price increase by 6.86%, according to Google Finance.

Source: Google Finance

Despite this uptick, the stock experienced a decline of 21.15% year-to-date and approached nearly year-long lows in September.

This performance coincides with Bitcoin’s current trading price of $67,097.71, which has seen a slight drop of 0.99% over the past 24 hours, as reported by CoinMarketCap.

Can things turn in favor of MARA holdings?

However, amidst such negative news, a recent analysis from Macquarie indicated a potential turnaround for MARA Holdings. The analysis shows that the firm has initiated coverage with an “Outperform” rating.

The report highlights the company’s strategic shift towards artificial intelligence (AI) and High-Performance Computing (HPC), suggesting that these innovations could drive a remarkable 50% increase in its valuation.

Hence, with a price target set at $22 per share, marking the highest target since July, Macquarie underscores MARA’s significant position in the market.

MARA remains the largest publicly listed Bitcoin producer, boasting a market capitalization of nearly $5 billion, surpassing its closest competitor, Core Scientific, valued at $3.3 billion.