ZACKSยท2025-06-20 15:00Core Insights - MicroStrategy (MSTR) is the largest Bitcoin treasury company, holding 592,100 Bitcoins, while MARA Holdings (MARA) is a dedicated Bitcoin miner [1] - Bitcoin has reached an all-time high of $111,695, driven by increased acceptance as a non-sovereign asset and institutional adoption [2] - The U.S. government's liberal policies under President Trump, including the creation of a crypto reserve, are favorable for cryptocurrency stocks [3] Bitcoin Market Dynamics - Bitcoin's price fluctuated, dropping to $103,000 before recovering to above $106,000, significantly higher than $76,000 in early April [4] - Year-to-date performance shows MSTR shares up 27.4%, while MARA shares have decreased by 13.6% [4] Company Performance and Strategy - MSTR raised its Bitcoin yield target from 15% to 25% for 2025, with a dollar gain target increased to $15 billion [7][8] - MSTR has raised $6.6 billion through equity offerings and $3.4 billion through fixed income as part of its capital strategy [9] - MARA holds 47,531 Bitcoins and is expanding its mining capacity, having acquired sites at a cost significantly below the industry average [12][13] Operational Challenges - Rising hashrate is impacting Bitcoin miners' margins, with production costs expected to exceed $70,000 per Bitcoin [14] - MARA reported energy costs per Bitcoin of $35,728 in Q1 2025, indicating pressure from rising operational expenses [14] Earnings Estimates - MSTR's 2025 loss estimate remains at $15.73 per share, while MARA's estimate has improved slightly to $1.77 per share [15][16] Valuation Insights - Both MSTR and MARA are considered overvalued, with MSTR trading at a Price/Book ratio of 3.05X compared to MARA's 1.37X [17] Conclusion - Both companies benefit from holding Bitcoin, but MARA's reliance on Bitcoin makes it riskier compared to MSTR's diversified business model [20]