Bitcoin (BTC) miner MARA Holdings (MARA) stock outperforms peers as the company's focus on lowering costs is seen as positive by analysts.

MARA's shares rose as much as 9% on Friday, while the CoinShares Valkyrie Bitcoin Miners ETF (WGMI) has fallen about 0.3%.

MARA stock price rose Friday morning after the Bitcoin miner missed first-quarter earnings expectations but highlighted plans to lower costs with more solar and flared gas-driven data centers.

What Happened

MARA stock is up 7.6% to $15.08 Friday morning, while shares of the CoinShares Valkyrie Bitcoin Miners ETF (NYSE:WGMI) have fallen slightly.

The Relative Strength Index (RSI) for MARA is 71.31, indicating that the stock is in overbought territory.

Why It's Important

Jeffries analyst Jonathan Petersen said that with the Bitcoin BTC price improving in the second quarter of 2023 and MARA focusing on more sustainable energy sources, power costs should come down in the coming quarters and help margins.

"MARA is expanding infrastructure at its 114 MW wind farm and has fully energized its 25 MW micro flared gas data center, both of which should drive down power costs," Petersen said in a Friday note.

If the mining firm continues to buy up more of such power sources, it would help the company's profitability, the analyst added.

"Continued acquisition of power assets is expected to further reduce energy costs, expand margins, and better prepare the firm for the next halving."

The analyst reiterated his Hold rating on the stock, while raising the price target to $16 from $13.

Analyst Rating

According to Benzinga Pro, the average price target on MARA is $20.83 and the majority of analysts covering the stock have a Buy rating.

MARA Earnings

MARA reported a first-quarter net loss of $1.10 per share, which missed the average analyst estimate of a $0.17 loss per share, according to Benzinga's consensus estimates. Revenue came in at $1.31 billion, which missed the estimate of $1.39 billion.

The company's bitcoin mining operations reported a loss for the period, while revenue from transaction services and the mining pool both came in higher than the previous quarter.

"We achieved significant milestones in advancing our strategic initiatives to reduce costs, generate revenue streams, and position MARA for long-term success in the evolving cryptocurrency landscape," said CEO Peter M. Narr. "Our teams remain focused on executing these priorities and delivering value to our shareholders."

What's Next For MARA

MARA's shares have more than tripled in the year to date, fueled by the cryptocurrency miner's pivot into green energy and other avenues of diversification.

While the company didn't move into artificial intelligence like some peers, it's clear that MARA is seeking out new avenues for growth in an effort to become more profitable.

"This is what distinguishes MARA from its mining peers, and it's a factor that could continue to support the stock in the coming months," H.C. Wainwright analyst Kevin Dede said.

"Commentary last night made it clear the company remains focused on technology development in its core vertical of power conversion...with a peeled eye on driving energy costs to zero."

Dede, who has a Buy rating and price target of $28, added that he feels the company will be able to lower costs by focusing on these types of power sources.

"Our opinion on that aside for now, we agree with MARA's overarching objective to create opportunities by exploiting unused power or improving the efficiency of used power," the analyst said.

MARA's shares rose as much as 9% on Friday.output: Bitcoin miner MARA Holdings (NASDAQ:MARA) stock outperformed peers on Friday, even after its first quarter results missed Wall Street's estimates, as the company's focus on lowering costs is seen as positive by analysts.

Jeffries analysts said that with the Bitcoin BTC price improving in the second quarter of this year and MARA focusing on more sustainable energy sources such as solar and flared gas-driven data centers, power costs should come down in the coming quarters and help margins.

"MARA is expanding infrastructure at its 114 MW wind farm and has fully energized its 25 MW micro flared gas data center, both of which should drive down power costs," analyst Jonathan Petersen said in a note.

If the mining firm continues to buy up more of such power sources, it would help the company's profitability, Petersen wrote. "Continued acquisition of power assets is expected to further reduce energy costs, expand margins, and better prepare the firm for the next halving."

The analyst reiterated his Hold rating on the stock, while raising the price target to $16 from $13.

Bitcoin mining, once a very profitable business, has seen its profit margins crash drastically during the last bear market and even more so after the recent halving that cut the rewards by half. To make matters worse, rising power costs for