Compass Point Downgrades Marathon Digital Stock Rating: Analyst Cuts Price Target

Investment bank Compass Point has issued a bearish rating on Bitcoin mining company Marathon Digital (NASDAQ: MARA), reducing its stock recommendation from ‘neutral’ to ‘sell’. The target price has been lowered from $25 to $9.50, representing a potential decline of over 25% from the current stock price of approximately $13. Analysts express concern regarding Marathon’s high rate of cash expenditure, which may lead to shareholder equity dilution. Additionally, the company is trading at a premium compared to Bitcoin itself, posing challenges for investors seeking exposure to Bitcoin directly.