Compass Point Upgrades MARA Holdings Inc (MARA) to Buy

Compass Point analyst Michael Donovan upgraded MARA Holdings Inc (NASDAQ: MARA) from Neutral to Buy with a price target of $30.00.

The analyst comments "Stepping off the sidelines. We upgrade MARA to Buy from Neutral as we believe the sell-off related to bitcoin’s retrace has overshot fundamentals. At the market close Friday, MARA’s market cap was trading at roughly 87% of the value of its bitcoin holdings per basic share, ascribing little value to its 60.4Eh/s mining fleet and 1.8GW of energy capacity. At a bitcoin price of $86,000 at the time of publishing, the ratio stands at roughly 0.84x. On a bitcoin mining basis alone, we view MARA as undervalued as the company continues to grow and leverage partnerships and cheaper power globally. Additionally, at its current price, its nascent AI business is pure upside. We view MARA as a differentiated stock in the AI sector for investors with concerns over capex cycles and long-term viability. MARA’s strategy focuses on smaller datacenters over a diverse geographic footprint to serve inference demand at a lower capex burden. Also, its board looks more like a tech company than a bitcoin miner with Janet George (EVP of AI at Mastercard MA, ex-Intel Datacenter and AI) and Barbara Hump (former Siemens USA CEO). MARA has also added former ENGIE Chairman and CEO Gerard Mestrallet as Senior Advisor, giving the company a heavyweight partner in European power and infrastructure. Structural catalysts include closing the Exaion deal, a $168M move to take 64% of EDF’s HPC/AI cloud subsidiary, with optionality to 75%, and a likely closing window of 4Q25 or early 2026, and showing that Exaion can win sovereign and enterprise AI workloads in Europe. In the U.S., investors should watch how the MPLX partnership in West Texas moves from LOI to shovel-ready projects: MARA plans to build 400MW of gas-fired power and datacenter capacity there, scalable to 1.5GW, which would be a cornerstone of its 1.8GW portfolio, 1.1GW of flexible compute, and growing owned generation footprint. At its current pricing, the AI sector is effectively de-risked and provides additional upside. While bitcoin may have choppy price action in the near term, we are bullish on medium- to long-term price appreciation and view MARA’s stock rising accordingly while offering unpriced optionality on HPC and inference initiatives. Therefore, we upgrade our rating to Buy and maintain our price target of $30."

For an analyst ratings summary and ratings history on MARA Holdings Inc click here. For more ratings news on MARA Holdings Inc click here.

Shares of MARA Holdings Inc closed at $10.07 yesterday.

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