Stock Traders Purchase High Volume of Call Options on Marathon Digital (NASDAQ:MARA)

Key Points

• Traders bought an unusually high volume of calls — 407,027 call options were purchased on MARA on Friday, roughly 73% above the average daily call volume.
• Marathon agreed to acquire Long Ridge Energy & Power for about $1.5 billion, accelerating a pivot into energy and AI infrastructure but increasing near‑term financing and execution risk while prompting some analysts (e.g., Rosenblatt) to raise targets.
• Fundamentals and insider activity remain concerning: the company reported a large EPS miss (‑$4.52 vs. ‑$0.23 est.), negative margins, and insiders sold 172,605 shares over the last 90 days, tempering enthusiasm despite strategic moves.

Marathon Digital Holdings, Inc. (NASDAQ:MARA - Get Free Report) was the recipient of some unusual options trading on Friday. Stock investors bought 407,027 call options on the company. This is an increase of approximately 73% compared to the average daily volume of 235,207 call options.

Insider Activity at Marathon Digital

In related news, General Counsel Zabi Nowaid sold 42,090 shares of the stock in a transaction dated Friday, April 17th. The stock was sold at an average price of $12.00, for a total value of $505,080.00. Following the completion of the transaction, the general counsel owned 1,007,047 shares of the company's stock, valued at approximately $12,084,564. This represents a 4.01% decrease in their ownership of the stock. The sale was disclosed in a document filed with the SEC, which is accessible through this link. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, CEO Frederick G. Thiel sold 27,505 shares of the stock in a transaction dated Tuesday, March 17th. The shares were sold at an average price of $9.18, for a total value of $252,495.90. Following the completion of the transaction, the chief executive officer directly owned 4,788,954 shares of the company's stock, valued at $43,962,597.72. This represents a 0.57% decrease in their position. The disclosure for this sale is available in the SEC filing. Over the last 90 days, insiders sold 172,605 shares of company stock valued at $1,745,843. Insiders own 0.80% of the company's stock.

Institutional Trading of Marathon Digital

Several hedge funds have recently made changes to their positions in MARA. Integrated Wealth Concepts LLC lifted its holdings in shares of Marathon Digital by 9.8% in the 1st quarter. Integrated Wealth Concepts LLC now owns 11,073 shares of the business services provider's stock worth $127,000 after purchasing an additional 991 shares during the last quarter. NewEdge Advisors LLC lifted its holdings in shares of Marathon Digital by 65.3% in the 1st quarter. NewEdge Advisors LLC now owns 7,672 shares of the business services provider's stock worth $88,000 after purchasing an additional 3,032 shares during the last quarter. United Services Automobile Association lifted its holdings in shares of Marathon Digital by 8.2% in the 1st quarter. United Services Automobile Association now owns 20,634 shares of the business services provider's stock worth $257,000 after purchasing an additional 1,569 shares during the last quarter. UBS AM A Distinct Business Unit of UBS Asset Management Americas LLC lifted its holdings in shares of Marathon Digital by 11.0% in the 1st quarter. UBS AM A Distinct Business Unit of UBS Asset Management Americas LLC now owns 643,311 shares of the business services provider's stock worth $7,398,000 after purchasing an additional 63,903 shares during the last quarter. Finally, Envestnet Asset Management Inc. bought a new stake in shares of Marathon Digital in the 2nd quarter worth approximately $183,000. Institutional investors own 44.53% of the company's stock.

Analysts Set New Price Targets

MARA has been the subject of a number of analyst reports. HC Wainwright reissued a "neutral" rating on shares of Marathon Digital in a report on Friday, February 27th. Cantor Fitzgerald reduced their target price on Marathon Digital from $11.00 to $10.00 and set an "overweight" rating on the stock in a report on Thursday, April 9th. Rosenblatt Securities increased their target price on Marathon Digital from $11.00 to $15.00 and gave the stock a "buy" rating in a report on Friday. Morgan Stanley started coverage on Marathon Digital in a report on Monday, February 9th. They set an "underweight" rating and a $8.00 target price on the stock. Finally, Weiss Ratings downgraded Marathon Digital from a "hold (c-)" rating to a "sell (d)" rating in a report on Friday, March 6th. Seven research analysts have rated the stock with a Buy rating, three have issued a Hold rating and two have issued a Sell rating to the company's stock. According to MarketBeat, the stock currently has a consensus rating of "Hold" and a consensus target price of $18.22.

Marathon Digital Trading Down 4.4%

NASDAQ:MARA opened at $11.46 on Friday. The company has a quick ratio of 1.27, a current ratio of 1.27 and a debt-to-equity ratio of 0.92. The business's 50 day moving average is $9.41 and its two-hundred day moving average is $11.24. Marathon Digital has a 52 week low of $6.66 and a 52 week high of $23.45. The company has a market cap of $4.36 billion, a PE ratio of -2.89 and a beta of 5.29.

Marathon Digital (NASDAQ:MARA - Get Free Report) last released its earnings results on Thursday, February 26th. The business services provider reported ($4.52) EPS for the quarter, missing analysts' consensus estimates of ($0.23) by ($4.29). Marathon Digital had a negative return on equity of 19.01% and a negative net margin of 144.58%.The firm had revenue of $202.31 million for the quarter, compared to the consensus estimate of $250.74 million. During the same period in the prior year, the business earned $1.24 EPS. The company's quarterly revenue was down 5.6% on a year-over-year basis. On average, analysts predict that Marathon Digital will post -0.79 EPS for the current year.

Trending Headlines about Marathon Digital

Here are the key news stories impacting Marathon Digital this week:

• Positive Sentiment: MARA agreed to buy Long Ridge Energy & Power, adding a 505 MW gas plant and a 1,600‑acre Ohio campus that creates line‑of‑sight to >1 GW of total capacity and expands MARA’s digital infrastructure and AI-ready power footprint. This materially accelerates the company’s pivot beyond pure bitcoin mining into energy and AI infrastructure. MARA acquires Long Ridge Energy platform for $1.5 billion
• Positive Sentiment: Sell‑side momentum: Rosenblatt raised its price target from $11 to $15 and initiated/maintained a Buy stance, signaling analyst conviction in upside from the strategic deal and re‑rating potential. Rosenblatt raises MARA target to $15
• Neutral Sentiment: Company provided more detail on the M&A in a recent call/transcript; investors can use the transcript to assess management’s integration plan, expected capex and timing. MARA M&A call transcript
• Neutral Sentiment: Media coverage frames the deal as part of a broader shift into AI infrastructure and power markets — a thematic positive long term but dependent on execution and AI demand. Major energy firm moves into AI infrastructure
• Negative Sentiment: Price and financing risk: the deal values Long Ridge at ≈$1.5–$1.52B including debt, will increase MARA’s leverage and requires regulatory approvals with expected close in Q3 2026 — raises near‑term execution and financing risk. FTAI announces sale to MARA
• Negative Sentiment: Fundamentals remain a concern: last reported quarter showed a large EPS miss, negative margins and ongoing volatility tied to bitcoin economics; those legacy weaknesses temper enthusiasm until integration and profitability paths are clearer. No link

Marathon Digital Company Profile

Marathon Digital Holdings, Inc is a digital asset technology company specializing in the mining and acquisition of bitcoin. Headquartered in Las Vegas, Nevada, the firm employs high-performance application-specific integrated circuit (ASIC) miners and proprietary software to secure the Bitcoin network and expand its crypto-mining footprint. Marathon Digital focuses on operational efficiency and scalability, while maintaining rigorous standards for regulatory compliance and corporate governance.

The company operates multiple large-scale mining facilities throughout North America, including sites in Texas, Montana and New York.

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