MARA Trading at a Premium When Considering Debt, Says VanEck
- Both Bitcoin holders, MARA Holdings and MicroStrategy (MSTR), have seen declines of approximately 40% over the past six weeks.
- MARA is down by about 55% year-over-year, with a market cap of $4.7 billion.
- MARA’s outstanding convertible debt totals $3.3 billion against its $4.9 billion in Bitcoin holdings.
- After adjusting for debt, MARA’s net Bitcoin value is estimated at $1.6 billion.
- Current short interest in MARA stands at around 27%, but true short interest may be closer to about 15% after adjustments.
Matthew Sigel from VanEck indicates that MARA is trading at a premium relative to its Bitcoin assets when factoring in its significant convertible debt and overall liabilities, contrasting it with MSTR’s more straightforward valuation metrics.
Given the complexities of MARA’s capital structure, it is suggested that over half of its equity volatility is influenced by these financial dynamics rather than solely by Bitcoin price movements.
