Why Marathon Digital Holdings Stock Rose More Than 12% Today

Shares of Marathon Digital Holdings (NASDAQ: MARA) gained as much as 12.4% on Thursday morning, settling down at a 10% gain by 2:50 p.m. EST. The Bitcoin (CRYPTO: BTC) mining company posted a mixed third-quarter earnings report on Wednesday morning, driving stock prices 14.8% lower in yesterday's trading. Today, Marathon investors were inspired by a bullish earnings analysis from an analyst at B. Riley.

Analyst Lucas Pipes reaffirmed his buy rating on Marathon's stock and raised his target price from $87 to $92 per share. The stock had closed Wednesday's session at $64.84 per share, so the new price target works out to an upside of 42%.

Pipes' price target was based on Marathon's accelerating production of self-mined Bitcoin tokens. The company generated 1,252 tokens for the Bitcoin network in the third quarter, up from 654 in the second quarter and just 192in the first quarter. The self-mined Bitcoin collection has added up to 2,098 tokens year to date, worth $136.6 million at current Bitcoin spot prices.

Source Fool.com