Is it possible for a stock linked to Bitcoin mining to generate even greater returns than Bitcoin itself? One company, Mara Holdings, offers a distinctive investment opportunity in the cryptocurrency arena, enhanced by tangible business fundamentals.
Imagine being able to not only participate in the potential appreciation of Bitcoin (BTC -1.43%) but also own a stake in a legitimate business. This business possesses real-world assets, generates revenue, and even provides transparent financial reports for analysis.
This isn’t a hypothetical scenario; it’s a valid investment avenue for exposure to the Bitcoin market.
While attention is focused on Bitcoin potentially reaching $125,000, astute investors might consider Mara Holdings (MARA 0.07%) as an alternative. This isn’t a rejection of Bitcoin, but rather a pursuit of potentially higher returns with a degree of risk mitigation. Sometimes, the most effective way to capitalize on a trend isn’t to dive in headfirst but to own the infrastructure that supports it.
Mara Holdings: Beyond Bitcoin Mining
Mara Holdings, formerly known as Marathon Digital Holdings, has evolved beyond its initial focus as solely a dedicated Bitcoin mining operation. The rebranding served to differentiate the company from other entities with the “Marathon” name, particularly the energy giant Marathon Petroleum. This distinction was particularly important as Mara expanded its operations to include crypto mining, data center services, and energy production.
According to Mara’s second-quarter 2025 report, the company is “more than a bitcoin treasury company.” Investments in data center infrastructure and energy generation equipment in 2024 laid the groundwork for a revised business strategy.
By vertically integrating power production with its energy-intensive Bitcoin mining activities, Mara aims to reduce operational costs and maintain greater control over its mining processes. Mara has allocated substantial capital to its mining infrastructure, surpassing investments made by rivals such as Riot Platforms and Cleanspark. Furthermore, the company is actively pursuing international expansion, targeting approximately 50% of its revenue from overseas ventures by 2028.
Currently, the majority of Mara’s revenue is derived from Bitcoin mining. The company also sells excess energy when market conditions are favorable, such as during the Texas heatwaves of summer 2024. Looking ahead, Mara plans to offer its power-efficient data centers to enterprise-level computing companies for artificial intelligence (AI) workloads.
However, Mara’s dedication to Bitcoin mining remains strong. Holding over 52,850 Bitcoins, the company’s digital currency reserve is valued at $6.59 billion based on Bitcoin’s price of $124,600 on October 6th. This represents 86% of the company’s total market capitalization. Mara continues to invest in Bitcoin mining equipment, having increased its computing power by 82% year-over-year.
Bitcoin: The Undisputed Leader
In contrast, Bitcoin is simply Bitcoin.
As the oldest and most valuable cryptocurrency, Bitcoin boasts a market capitalization of $2.48 trillion. It was conceived as a decentralized and secure system for storing and transferring monetary value. The total supply of Bitcoin is capped at 21 million, with 94.9% already in circulation.
While the cryptocurrency market is known for its volatility and rapid changes, Bitcoin has consistently maintained its position as the market leader and is expected to retain its dominance in the foreseeable future. Despite dissenting opinions that question the need for a digital currency or suggest that alternative assets could surpass Bitcoin, its fundamental value proposition remains strong.
The author believes that Bitcoin and related assets can be valuable additions to well-diversified long-term investment portfolios. Approximately 7% of the author’s portfolio is allocated to Bitcoin and Bitcoin-related stocks, including a modest holding in Mara.
Image source: Getty Images.
Should You Shift Your Focus from Bitcoin to Mara?
The author’s personal investment strategy includes positions in both Bitcoin and Mara, with the Mara investment representing a smaller portion of the overall Bitcoin exposure. This approach is considered suitable for the current market landscape.
While Mara’s diversification initiatives could enhance the company’s stability in the long term and its crypto-mining investments could potentially drive shareholder returns above Bitcoin’s performance, these diversification efforts are still in their early stages and could face challenges during a potential crypto winter.
Therefore, the author does not recommend abandoning Bitcoin in favor of Mara shares. However, the stock may be a valuable addition to a diversified cryptocurrency portfolio. Patience is essential, particularly in the stock market.