MARA Holdings (NASDAQ:MARA) stands as one of the largest Bitcoin mining companies globally, currently holding a substantial stash of 26,200 BTC.

In a strategic move, MARA sold $300 million in convertible notes to acquire 4,144 BTC, mirroring the approach of prominent figures like Michael Saylor.

Despite recent challenges, the author believes MARA shares are undervalued, projecting revenue could reach approximately $1 billion by 2025, even with declines in block rewards.

In the second quarter of 2024, MARA reported revenues of $145.1 million, marking a 78% year-over-year increase, although the company faced a quarterly loss of $199.7 million due to Bitcoin's decreased fair value.

After peaking at $75 in November 2021, MARA's stock price has since declined, influenced by interest rate hikes and a bearish Bitcoin cycle.

Over the past five years, MARA shares have surged by 752%, significantly outperforming the S&P 500 Index, which increased by 86% during the same period.

Currently, MARA's price-to-sales (P/S) ratio stands around 6, which is notably low compared to its peak ratio of over 300 during the 2021 bull market.

While concerns about share dilution exist, the author argues that it is a necessary step for growth as MARA aims to increase its hash rate.

MARA is targeting an expansion of its hash rate to 50 EH/s by the end of 2024, up from the current 31 EH/s, despite facing a 30% year-over-year decline in BTC production.

There is a potential for a short squeeze in MARA, as 27.51% of shares are currently sold short, which could lead to a significant price increase.

Looking ahead, key catalysts for MARA include potential interest rate cuts, the release of former Binance CEO CZ from prison, the onset of Q4, and the upcoming U.S. presidential election.

Understanding the role of Bitcoin miners like MARA in the cryptocurrency ecosystem is crucial, as they hold the potential for long-term rewards despite inherent risks.