$Marathon Digital Holdings Inc(MARA)$

It seems the recent $Coinbase Global, Inc.(COIN)$ stock listing took away some of the interest. COIN stock absorbed a lot of capital from the crypto stock space, leading to a short-term decline in other crypto names like Marathon. And now Coinbase stock itself has turned downward, causing sentiment to further sour. So will MARA stock get back on track?

Marathon in theory has a tremendous profit opportunity.According to a recent investor presentation, Marathon will be a financial powerhouse in coming years.Based on current projections, Marathon assumes the following once its mining rigs are all deployed. It believes its 103,120 miners will produce 10.37 ExaHashes (EH) per second. An ExaHash, to be clear, is one quintillion hashes. This would be tremendous. Current mining capacity globally is around175 to 200 EH/s, meaning that Marathon would make up more than 5% of total mining capacity. This would translate into Marathon producing an estimated 55-60 Bitcoins per day.

Per Marathon’s calculations,it would cost just $4,541 per Bitcoin, on average, to mine these. Throw a $60,000 price on every one sold, and the company would be seemingly minting money. At a $60,000 sales price, Marathon would generate $103 million in monthly revenue and $87.2 million in monthly profits, it calculates. Annualize those figures, and the business would generate around $1 billion annually in mining profit. Even after overhead, financing costs, taxes and the like, Marathon would be doing quite well indeed if these projections pan out.