Better Bitcoin Stock: Strategy vs. MARA Holdings

Core Viewpoint - Strategy (formerly MicroStrategy) has significantly outperformed MARA Holdings (formerly Marathon Digital) over the past year, with Strategy's stock rising over 370% while MARA's stock fell nearly 35% despite Bitcoin's price rallying nearly 90% during the same period [2]. Group 1: Company Overview - Strategy is the world's largest corporate holder of Bitcoin, having accumulated 450,000 Bitcoins worth approximately $97 billion, purchased at an average price of$62,691, totaling about $28.2 billion [4]. - MARA is the world's largest Bitcoin miner, with a hash rate of 53.2 exahash per second (EH/s) and an average production of 24.2 Bitcoins per day [6]. Group 2: Financial Performance - Strategy's core software business is experiencing minimal growth, primarily generating cash to fund Bitcoin purchases, while also increasing debt and issuing shares [5]. - MARA holds 44,893 Bitcoins valued at$4.3 billion, representing 72% of its enterprise value of $6 billion [7]. Group 3: Competitive Advantages - Strategy has a key advantage as it does not incur energy costs to acquire Bitcoin, converting cash from its software business and financing activities into Bitcoin [8]. - MARA faces rising energy costs and increased operating expenses due to its mining operations, which will be exacerbated by the Bitcoin halving events [9]. Group 4: Investment Outlook - If Bitcoin's price is expected to rise, Strategy is viewed as a more favorable investment compared to MARA, which requires declining energy costs and economies of scale to remain competitive [11].