Why Marathon Digital Holdings Remains Compelling

SummaryMarathon Digital is wise to hold on to Bitcoin, even though it may eventually have to sell some if prices remain under pressure.If the price of Bitcoin doesn't rebound, losses will increase to concerning levels.Even with these challenges, Marathon is rapidly increasing its EH/s and believes it will reach 23 EH/s close to mid-2023.Adding a significant number of miners will offset some of its current losses.If the price of Bitcoin continues to climb, it bodes well for Marathon because it leverages the price of Bitcoin, under most conditions, better than its peers.Marathon Digital Holdings (NASDAQ:MARA) has been experiencing the pain of a weak Bitcoin (BTC-USD) price in response to challenging economic conditions, which, as usual, have hit high-growth assets like Bitcoin.A major challenge for the Bitcoin miner has been to continue to grow the number of miners it deploys and increasing its EH/s, which will provide opportunities to mine more Bitcoin.Much of its near-term performance hinges on whether or not the price of Bitcoin will meaningfully rebound in the last quarter of 2022 and into 2023. If it does, a lot of the company's challenges will be solved. And if it doesn't, it'll probably be forced to sell some Bitcoin in order to raise capital.In this article we'll look at the pros and cons of taking a position in Marathon, and why I think it remains a compelling play in the Bitcoin mining sector.Major challengeIn order to...