Marathon Digital - AI Stock Analysis

Analysis generated January 7, 2026

Marathon Digital Holdings, Inc. is an industry-leading digital asset technology company that mines cryptocurrencies, focusing on the blockchain ecosystem and the generation of digital assets. The company operates one of the largest Bitcoin mining operations in North America. With its primary focus on Bitcoin, Marathon Digital leverages cutting-edge technology and efficient operations to maximize its output and profitability.

Fundamental Analysis

When examining the fundamentals of Marathon Digital, several critical financial metrics stand out. The revenue for the last quarter was reported at $252 million, reflecting a 5.84% increase compared to the previous quarter. More significantly, there is a substantial year-over-year growth of 91.73%.

However, the net income figures present a mixed picture. For the last quarter, the net income was $123 million, marking a precipitous decline of 84.77% compared to the preceding quarter. Despite this, year-over-year growth shows an increase of 198.67%, suggesting positive momentum over an extended period.

In terms of EBITDA, the last quarter's figure was $341 million. While there’s a quarter-over-quarter decrease of 71.39%, the year-over-year increase is an impressive 585.22%, indicating significant operational improvements compared to the previous year.

The current Price-to-Earnings (P/E) ratio stands at 4.12, considered low, potentially indicating the stock may be undervalued and suggesting a bullish outlook. However, insider selling within the last couple of months serves as a bearish signal that warrants caution.

Technical Analysis

The current stock price is $10.18, down by 13.29% from a month ago, which could be concerning in the short term. Over the longer term, the stock price has decreased by 44.49% from a year ago, a potential cause for concern for investors.

Despite these declines, the trend appears to be bullish, reflected by the current Simple Moving Average (SMA10) of 9.76, which is higher than the previous SMA10 of 9.70. Additionally, the Relative Strength Index (RSI) is at 65.5, indicating a neutral condition, neither overbought nor oversold.

Alternative Data Analysis

Alternative data provides additional insight into the company's performance and market sentiment. Job postings have declined by 70% in the last couple of months, as Marathon Digital has only 3 open positions on notable job boards. This reduction might indicate efforts to improve margins or cut costs, which is not a positive sign for a company in a growth phase.

Employee sentiment at Marathon Digital is overwhelmingly positive, with an estimated 100% of employees having a positive outlook on the company's future, which is a favorable sign.

In terms of customer acquisition, the company's website has seen an estimated 68,000 visitors, a decrease of 17% in the last couple of months, suggesting potential customer loss. However, customer engagement on social media shows improvement, with a 58% increase in Twitter followers, indicating rising interest in the company.

According to AltIndex's AI scoring, which integrates fundamental, technical, and alternative data, Marathon Digital has an AI score of 55, signifying a "hold" recommendation.

Conclusion

Considering the comprehensive analysis of Marathon Digital, the stock presents a mixed picture. The company demonstrates substantial year-over-year revenue and EBITDA growth, indicating strong operational performance. While the declining net income and significant short-term stock price decrease raise concerns, the bullish trend and positive employee sentiment are promising.

Given the low P/E ratio, the stock may be undervalued, presenting a potential buying opportunity for long-term investors. However, the insider selling and reduced customer acquisition metrics suggest caution.

Based on the current data and AI scores, a "hold" recommendation appears prudent, allowing investors to monitor further developments in the company's performance and market conditions before making a substantial investment decision.

Disclaimer: This AI stock analysis, generated by an experimental AI tool, is for informational purposes only and not financial advice. Information is based on publicly available data and may not always be accurate or current.