MARA Stock Jumps as Bitcoin Slips

MARA stock rose 4.6% to $11.83 on Tuesday, despite Bitcoin slipping about 0.9%. The divergence between MARA's performance and its underlying asset is notable, given that Bitcoin's September 8 close was worth roughly $2.79 billion, or 61% of the company's $4.57 billion equity value.

However, not all of MARA's Bitcoin holdings are available to shareholders. As of June 30, the company held 35,577 Bitcoin, but it has since sold 23,093 for $1.6 billion. Additionally, 9,270 Bitcoin - approximately a quarter of the total - were loaned or pledged.

MARA's treasury is not equivalent to unrestricted cash, and the company's debt level should also be considered when evaluating its valuation. With about $2.4 billion in debt at June 30, MARA's enterprise-style figure - roughly $4.18 billion - may provide a more accurate picture of its operating assets.

The company's mining business still generates significant cash flow, but the spread between Bitcoin prices and production costs can be volatile. With a gross spread of about $39,749 per coin before labor, equipment depreciation, financing, overhead, and taxes, investors should exercise caution when treating this as profit.