Marathon Digital Holdings, Inc. (MARA) and Riot Platforms, Inc. (RIOT) have seen an increase in their share prices on Thursday as Bitcoin (BTC/USD) rises more than 4% and trades above $45,000. Both companies have struggled at the start of 2024, with Marathon Digital shares down by 17% and Riot Platforms shares down by 20% year-to-date.
Earlier this week, both Marathon Digital and Riot Platforms reported a decrease in monthly Bitcoin production for January. However, with the price of Bitcoin surpassing the $45,000 mark, shares of these Bitcoin miners appear to be trading higher. It is worth noting that Bitcoin has experienced a 4% decrease over the past month after the approval of several spot Bitcoin ETFs. Nevertheless, the cryptocurrency remains nearly 100% higher compared to the previous year.
Equity research can provide valuable insights into a company’s fundamentals and expected future earnings. Analysts use financial models to arrive at a price target and recommendation for a stock. For Marathon Digital Holdings, analysts have an average 1-year price target of $25.5, indicating an expected upside of 31.92%. It is important to note that different assumptions can lead to varying price targets and recommendations. Currently, no analysts have bearish recommendations on Marathon Digital Holdings, while two analysts have bullish ratings. The highest price target comes from BTIG at $27.0, while the lowest comes from HC Wainwright & Co. at $24.
In terms of price action, Marathon Digital shares are up 10.2% at $19.33, and Riot Platforms shares are up 7.95% at $12.22 at the time of publication. These positive movements align with the rise in Bitcoin’s price.
Overall, the increase in Bitcoin’s price has had a positive impact on the shares of Marathon Digital Holdings and Riot Platforms. Despite the challenges faced earlier this year, both companies have seen a boost in their share prices. As the cryptocurrency market continues to evolve, investors will closely monitor the performance of Bitcoin and its impact on related companies.
