We use cookies to understand how you use our site and to improve your experience.
This includes personalizing content and advertising.
By pressing "Accept All" or closing out of this banner, you consent to the use of all cookies and similar technologies and the sharing of information they collect with third parties.
You can reject marketing cookies by pressing "Deny Optional," but we still use essential, performance, and functional cookies.
In addition, whether you "Accept All," Deny Optional," click the X or otherwise continue to use the site, you accept our Privacy Policy and Terms of Service, revised from time to time.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
Strategy vs. MARA Holdings: Which Bitcoin-Focused Stock Has an Edge?
Read MoreHide Full Article
Key Takeaways
MSTR holds 592,100 bitcoins, and raised its bitcoin yield target from 15% to 25% for 2025.
MSTR plans to raise $84B by 2027 via equity and fixed-income under its ongoing 21/21 strategy.
MARA owns 47,531 bitcoins and is expanding mining capacity but faces pressure from rising energy costs.
MicroStrategy (MSTR - Free Report) , doing business as “Strategy,” and MARA Holdings (MARA - Free Report) are two well-known Bitcoin-focused stocks. While Strategy is the world’s largest Bitcoin treasury company, holding 592,100 Bitcoins as of June 15, 2025, MARA Holdings is a pure-play Bitcoin miner.
Bitcoin, the most popular cryptocurrency, has been soaring due to increasing acceptance as a non-sovereign asset, as well as higher institutional and corporate adoption. Bitcoin hit an all-time high of $111,695 in May, apparently benefiting from easing trade tensions between the United States and China, as well as Moody’s downgrade of U.S. sovereign debt, which reflected the digital currency’s growing recognition as a store of value.
The liberal policies of U.S. President Donald Trump have been benefiting Bitcoin and other crypto assets. An executive order by President Trump, which directed a working group to study and propose changes to cryptocurrency regulations, bodes well for crypto enthusiasts. In March, President Trump announced the creation of a crypto reserve, including Bitcoin, Ethereum, XRP, Solana and Cardano, which augurs well for cryptocurrency-focused stocks, including Strategy and MARA Holdings.
However, the escalating conflict between Israel and Iran, as well as the increasing chances of U.S. involvement, has aggravated volatility. Bitcoin stooped to $103,00 but recovered to trade above $106,000, lower than the all-time high, much higher than the $76,000 it registered in early April. Moreover, macroeconomic challenges, including higher tariffs, are concerning for both stocks. In the past week, MSTR and MARA shares have dropped 2.8% and 8.4%, respectively. Year to date, while MSTR shares have appreciated 27.4%, MARA has fallen 13.6%.
MSTR & MARA Stocks’ Performances
Image Source: Zacks Investment Research
Strategy or MARA Holdings, which has an edge now?
The Case for MSTR Stock
Strategy benefits from increasing bitcoin yield, 13.7% as of April 28, 2025, keeping the company on track to reach the full-year target of 15%, which is now raised to 25%, and the bitcoin dollar gain target to $15 billion (up from the initial target of $10 billion). Bitcoin gains in dollar terms were $4.1 billion in the first quarter of 2025 and $5.8 billion as of April 28, 2025.
The company’s disciplined approach to capital raising through preferred equity offerings — Strike (8% convertible preferred is trading with an effective yield of roughly 9%) and Strife (10% fixed coupon perpetual preferred) — is a key catalyst. As of April 28, 2025, MSTR raised $6.6 billion through equity offerings and $3.4 billion through fixed income ($2 billion from convertible notes, and $0.7 billion each through Strike and Strife).
Strategy has issued $20.9 billion in equities and $6.4 billion in fixed-income securities as part of its 21/21 plan since Oct. 30, 2024. The company has $14.6 million remaining under fixed-income securities and $0.1 million under equities as part of the existing plan. Strategy currently plans to raise $42 billion through equity issuance and $42 billion through fixed-income securities by the end of 2027. Under the current plan, the company has $21.1 billion in equity and $35.6 billion in fixed-income securities remaining to be issued.
Strategy is benefiting from growing software subscription revenues. The company benefits from continuing cloud demand with its flagship Strategy One, which powers some of the largest analytics deployments in the world. Strategy One supports varied industries, including retail, banking, technology, manufacturing, insurance, consulting, healthcare, telecommunications and the public sector. MicroStrategy is leveraging generative AI to automate and accelerate the deployment of AI-enabled applications across enterprises.
The Case for MARA Stock
MARA Holdings hold 47,531 bitcoins at the end of the first quarter of 2025. The company continues with its commitment to scaling operations and enhancing efficiencies. In 2024, Marathon acquired seven sites across the United States. In the third quarter of 2024, the company increased its interconnect-approved capacity by 372 MW across three Ohio data centers, positioning itself for sustained mining expansion. MARA also acquired the Hopedale and Hannibal facilities for just $270,000 per MW, significantly below the industry average of $900,000 to $1.5 million per MW.
MARA Holdings is developing a greenfield facility in Ohio, which is expected to add 150 MW of capacity. These strategic expansions support MARA's growth and reduce reliance on third-party providers. By owning and operating more than 50% of its 1.7 GW compute capacity, the company aims to minimize operational risks and lower costs. This vertical integration aligns with MARA's objective to lead the digital asset industry while maintaining flexibility in energy sourcing and operational strategy.
However, Bitcoin miners are facing difficulties from rising hashrate hurting margins. Per Coindesk, which cited TheMinerMag report, mining difficulty hit a record 126.98 trillion, propelled by a 14-day average hashrate of 913.54 exahashes per second (EH/s). Intensifying competition and energy costs are expected to drive production expenses above $70,000 per Bitcoin from $64,000 in the first quarter of 2025. This does not bode well for miners, including MARA Holdings’ which reported energy costs per Bitcoin of $35,728 in first-quarter 2025.
The Zacks Consensus Estimate for MSTR’s 2025 loss is pegged at $15.73 per share, unchanged over the past 30 days. The company reported a loss of $6.72 per share in 2024.
The consensus mark for MARA Holdings’ 2025 loss has improved a couple of cents to $1.77 per share over the past 30 days. The company reported earnings of $1.72 per share in 2024.
Marathon Digital Holdings, Inc. Price and Consensus
Both Strategy and MARA Holdings are overvalued, as suggested by the Value Score of F.
In terms of Price/Book, Strategy shares are trading at 3.05X, higher than MARA Holdings’ 1.37X.
MSTR & MARA’s Valuation
Image Source: Zacks Investment Research
Conclusion
Both Strategy and MARA Holdings benefit from their policy to hold Bitcoin on their balance sheets. However, MARA’s significant dependence on Bitcoin makes it a riskier stock due to growing volatility. Strategy’s diversified business model (though software is a very small part of the business) offers some relief to investors in this respect.
Strategy, a Zacks Rank #3 (Hold) company, has an edge compared with MARA Holdings, which currently has a Zacks Rank #4 (Sell).
Image: Bigstock
Strategy vs. MARA Holdings: Which Bitcoin-Focused Stock Has an Edge?
Key Takeaways
MicroStrategy (MSTR - Free Report) , doing business as “Strategy,” and MARA Holdings (MARA - Free Report) are two well-known Bitcoin-focused stocks. While Strategy is the world’s largest Bitcoin treasury company, holding 592,100 Bitcoins as of June 15, 2025, MARA Holdings is a pure-play Bitcoin miner.
Bitcoin, the most popular cryptocurrency, has been soaring due to increasing acceptance as a non-sovereign asset, as well as higher institutional and corporate adoption. Bitcoin hit an all-time high of $111,695 in May, apparently benefiting from easing trade tensions between the United States and China, as well as Moody’s downgrade of U.S. sovereign debt, which reflected the digital currency’s growing recognition as a store of value.
The liberal policies of U.S. President Donald Trump have been benefiting Bitcoin and other crypto assets. An executive order by President Trump, which directed a working group to study and propose changes to cryptocurrency regulations, bodes well for crypto enthusiasts. In March, President Trump announced the creation of a crypto reserve, including Bitcoin, Ethereum, XRP, Solana and Cardano, which augurs well for cryptocurrency-focused stocks, including Strategy and MARA Holdings.
However, the escalating conflict between Israel and Iran, as well as the increasing chances of U.S. involvement, has aggravated volatility. Bitcoin stooped to $103,00 but recovered to trade above $106,000, lower than the all-time high, much higher than the $76,000 it registered in early April. Moreover, macroeconomic challenges, including higher tariffs, are concerning for both stocks. In the past week, MSTR and MARA shares have dropped 2.8% and 8.4%, respectively. Year to date, while MSTR shares have appreciated 27.4%, MARA has fallen 13.6%.
MSTR & MARA Stocks’ Performances
Image Source: Zacks Investment Research
Strategy or MARA Holdings, which has an edge now?
The Case for MSTR Stock
Strategy benefits from increasing bitcoin yield, 13.7% as of April 28, 2025, keeping the company on track to reach the full-year target of 15%, which is now raised to 25%, and the bitcoin dollar gain target to $15 billion (up from the initial target of $10 billion). Bitcoin gains in dollar terms were $4.1 billion in the first quarter of 2025 and $5.8 billion as of April 28, 2025.
The company’s disciplined approach to capital raising through preferred equity offerings — Strike (8% convertible preferred is trading with an effective yield of roughly 9%) and Strife (10% fixed coupon perpetual preferred) — is a key catalyst. As of April 28, 2025, MSTR raised $6.6 billion through equity offerings and $3.4 billion through fixed income ($2 billion from convertible notes, and $0.7 billion each through Strike and Strife).
Strategy has issued $20.9 billion in equities and $6.4 billion in fixed-income securities as part of its 21/21 plan since Oct. 30, 2024. The company has $14.6 million remaining under fixed-income securities and $0.1 million under equities as part of the existing plan. Strategy currently plans to raise $42 billion through equity issuance and $42 billion through fixed-income securities by the end of 2027. Under the current plan, the company has $21.1 billion in equity and $35.6 billion in fixed-income securities remaining to be issued.
Strategy is benefiting from growing software subscription revenues. The company benefits from continuing cloud demand with its flagship Strategy One, which powers some of the largest analytics deployments in the world. Strategy One supports varied industries, including retail, banking, technology, manufacturing, insurance, consulting, healthcare, telecommunications and the public sector. MicroStrategy is leveraging generative AI to automate and accelerate the deployment of AI-enabled applications across enterprises.
The Case for MARA Stock
MARA Holdings hold 47,531 bitcoins at the end of the first quarter of 2025. The company continues with its commitment to scaling operations and enhancing efficiencies. In 2024, Marathon acquired seven sites across the United States. In the third quarter of 2024, the company increased its interconnect-approved capacity by 372 MW across three Ohio data centers, positioning itself for sustained mining expansion. MARA also acquired the Hopedale and Hannibal facilities for just $270,000 per MW, significantly below the industry average of $900,000 to $1.5 million per MW.
MARA Holdings is developing a greenfield facility in Ohio, which is expected to add 150 MW of capacity. These strategic expansions support MARA's growth and reduce reliance on third-party providers. By owning and operating more than 50% of its 1.7 GW compute capacity, the company aims to minimize operational risks and lower costs. This vertical integration aligns with MARA's objective to lead the digital asset industry while maintaining flexibility in energy sourcing and operational strategy.
However, Bitcoin miners are facing difficulties from rising hashrate hurting margins. Per Coindesk, which cited TheMinerMag report, mining difficulty hit a record 126.98 trillion, propelled by a 14-day average hashrate of 913.54 exahashes per second (EH/s). Intensifying competition and energy costs are expected to drive production expenses above $70,000 per Bitcoin from $64,000 in the first quarter of 2025. This does not bode well for miners, including MARA Holdings’ which reported energy costs per Bitcoin of $35,728 in first-quarter 2025.
MSTR’s Earnings Estimate Revisions Steady, MARA’s Improves
The Zacks Consensus Estimate for MSTR’s 2025 loss is pegged at $15.73 per share, unchanged over the past 30 days. The company reported a loss of $6.72 per share in 2024.
MicroStrategy Incorporated Price and Consensus
MicroStrategy Incorporated price-consensus-chart | MicroStrategy Incorporated Quote
The consensus mark for MARA Holdings’ 2025 loss has improved a couple of cents to $1.77 per share over the past 30 days. The company reported earnings of $1.72 per share in 2024.
Marathon Digital Holdings, Inc. Price and Consensus
Marathon Digital Holdings, Inc. price-consensus-chart | Marathon Digital Holdings, Inc. Quote
Valuation: MARA is Cheaper Than MSTR
Both Strategy and MARA Holdings are overvalued, as suggested by the Value Score of F.
In terms of Price/Book, Strategy shares are trading at 3.05X, higher than MARA Holdings’ 1.37X.
MSTR & MARA’s Valuation
Image Source: Zacks Investment Research
Conclusion
Both Strategy and MARA Holdings benefit from their policy to hold Bitcoin on their balance sheets. However, MARA’s significant dependence on Bitcoin makes it a riskier stock due to growing volatility. Strategy’s diversified business model (though software is a very small part of the business) offers some relief to investors in this respect.
Strategy, a Zacks Rank #3 (Hold) company, has an edge compared with MARA Holdings, which currently has a Zacks Rank #4 (Sell).
You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.