Why I Can't Get More MARA shares

$Marathon Digital Holdings Inc(MARA)$ latest production report is a mixed bag, but for a long-term investor like myself, the positives outweigh the short-term dip in monthly production. Here's why I remain bullish on MARA.

While April's production dipped slightly compared to March, it still represents a 21% year-over-year increase. This growth is impressive, especially considering the recent Bitcoin halving event that inherently reduces miner rewards.

Marathon managed to increase its average operational hash rate by 15% in April. This translates to a more efficient mining operation, squeezing out more production per unit of energy consumed.

Another bright spot is the surge in transaction fees as a percentage of total revenue. This indicates increased network activity and potentially higher profitability for MARA.

Management's commitment to doubling their mining operations by year-end is a bold move. Their access to new machines and hash rate through existing orders positions them well to achieve this ambitious target. This planned expansion should significantly increase their Bitcoin production capacity in the long run.

With over $145 million in cash and equivalents, MARA has the financial resources to navigate potential market fluctuations and support their aggressive growth plans.

While my initial strategy was to accumulate shares through selling puts this week, the recent Bitcoin surge and subsequent rise in MARA's stock price most likely means that I am only going to collect the premiums from the $MARA 20240503 16.0 PUT$ puts I sold.

MARA 20240503 16.0 PUT

Despite the short-term production dip, MARA's focus on operational efficiency, aggressive expansion plans, and healthy cash reserves solidify my long-term bullish thesis. The Bitcoin mining industry is still in its early stages, and MARA is well-positioned to be a leader in this evolving space. I'll be closely monitoring their progress and may revisit the idea of accumulating shares through strategic options plays in the future.

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Disclaimer: This is not financial advice. Please do your own research before making any investment decisions.