Marathon Digital Clocks 168% Bitcoin Hashrate Growth, Will MARA Stock Recover?

Bitcoin miner Marathon Digital attained a major milestone last year clocking an impressive 168% Bitcoin hashrate growth and expanding its position as an industry leader. This aligns with Donald Trump’s vision of making America the hub for BTC production. However, despite this growth, the MARA stock is down 17% on the year chart with investors awaiting a strong recovery.

Marathon Digital Records High Bitcoin Hashrate Growth

Last year in 2024, MARA Pool, operated by Marathon Digital Holdings, recorded a massive 168% annual growth in BTC hashrate thereby consolidating its market position even further. This figure far exceeds the 49% growth of Bitcoin’s overall network during the same period, solidifying MARA Pool’s position as a leader in the mining sector.

As a result, the Bitcoin miner is contributing strongly to Donald Trump’s vision of boosting US influence in the global Bitcoin mining landscape. Last year was a turning point for America’s Bitcoin mining industry leaving behind the likes of top Asian players like Antpool.

Apart from Marathon Digital, the Foundry USA Pool witnessed significant growth while extending its lead over Antpool by a massive 100%. According to real-time Cloverpool data, Foundry’s hashrate surged from 157 EH/s in January 2024 to approximately 280 EH/s by December. On the other hand, Antpool’s hashrate rose modestly from 130 EH/s to 147 EH/s, falling behind Bitcoin’s overall network growth of 49%.

What’s Behind the MARA Stock Fall

While Marathon Digital has been expanding its market dominance, the MARA stock has underperformed market expectations. The stock ended the last year of 2024, 18% down.

This happened as the Bitcoin miner took a major hit in revenue following the Bitcoin halving event in March 2024, which reduced the mining rewards by 50%. The overall Bitcoin mining industry has been facing the heat of this.

Marathon Digital is projected to report a quarterly loss of $0.32 per share, reflecting a staggering year-over-year decline of 1,500%, according to the Zacks Consensus Estimate. For the full fiscal year, the consensus estimate anticipates an earnings loss of $0.29 per share, marking a year-over-year decrease of 270.6%

However, some market analysts believe that MARA would be a better bet than MicroStrategy (MSTR) moving into 2025. This is because the company has made strategic investments in expanding its Bitcoin mining operations while consolidating its market position.

Bitcoin Buying Spree Continues

Bitcoin miner MARA continued its BTC buying spree with nearly $1 billion in Bitcoin acquisitions last month in December. In his latest interview, Fred Thiel, the CEO of Marathon said that he is optimistic about 2025 and suggests investors invest a little bit in Bitcoin every month.

“We are very optimistic about this year. If the strategic Bitcoin reserves happen, lots of other countries will follow suit. Which means somebody has to acquire that Bitcoin from somewhere, because the little amount of Bitcoin that is mined every month, will not be enough. So, you’re going to see price increases there,” said Thiel.

While the MARA CEO refrained from specifying a target price for Bitcoin, he emphasized that the regulatory landscape suggests a bullish outlook for BTC. Thiel highlighted the potential scarcity of Bitcoin supply in the current market, noting that rising demand could significantly boost prices in 2025.