Shares of Marathon Digital Holdings (NASDAQ:MARA) experienced a downturn on Tuesday after JPMorgan revised its price target downward, moving from $14 to $12.
The adjustment by the financial giant reflects concerns over the recent fluctuations in Bitcoin's (BTC-USD) price and changes in the network's hash rate—factors that could influence the profitability of Bitcoin mining operations.
Analysts at JPMorgan highlighted that the lowered price target is a direct response to these key operational challenges faced by crypto miners like Marathon Digital.
As the hash rate increases, the complexity and costs of mining Bitcoin typically rise, potentially squeezing profit margins if Bitcoin's price does not advance proportionally.
At the time of writing this report, Marathon Digital Holdings' share price had decreased by 6.65%, falling to $17.32.