Why Wall Street Thinks MARA Holdings Could Rebound Despite a Brutal Year for Bitcoin Miners

After a punishing year for Bitcoin miners, MARA Holdings, Inc. (NASDAQ: MARA) is emerging as a name Wall Street believes could stage a recovery—despite lingering pressure across the crypto mining sector.

The stock recently landed on a list of companies analysts expect to bounce back, reflecting cautious optimism that MARA’s evolving business model may help it weather challenges that have plagued pure-play Bitcoin miners throughout 2025.

According to Rosenblatt, which lowered its price target on MARA from $22 to $15 on December 19 while maintaining a Buy rating, the core problem facing miners has been relentless network competition. As more miners fight for a fixed block reward, profitability has steadily eroded—a situation that worsened following Bitcoin’s recent price decline.

The firm’s analyst described conditions as having “gone from bad to worse,” noting that falling BTC prices combined with rising competition have left traditional mining operations under significant strain.

Despite the bleak outlook for pure-play miners, Rosenblatt highlighted a potential bright spot: high-performance computing (HPC).

Companies with exposure to HPC workloads—such as powering AI data centers—may be far less vulnerable to crypto market cycles. These opportunities, the analyst noted, are “entirely uncorrelated and considerably more profitable” than Bitcoin mining alone.

That distinction is becoming increasingly important as miners rethink their long-term strategies.

A December 17 Reuters report underscored this shift, noting that crypto mining firms, including MARA, have faced setbacks following the broader crypto downturn. Many had benefited from long-term electricity contracts that locked in cheap power, but declining crypto revenues have forced a reassessment.

As a result, several miners are now pivoting toward AI data centers, leasing energy and infrastructure to large technology companies with massive computing needs. This transition allows miners to repurpose existing assets while tapping into one of the fastest-growing segments of the tech economy.

Matthew Sigel, portfolio manager at the VanEck Onchain Economy ETF, summed up the appeal of these companies succinctly.

“These stocks combine two powerful themes: digital assets via their bitcoin exposure and AI,” Sigel said, adding that a shifting macro environment contributed to their recent selloff.

MARA Holdings is best known as a major Bitcoin miner, but it is also an energy-focused digital asset technology company, a distinction that could prove critical as the industry evolves.

By leveraging its energy infrastructure for both mining and computing workloads, MARA has optionality that many smaller or more narrowly focused miners lack. That flexibility is part of what keeps analysts from abandoning the stock altogether, even as near-term headwinds persist.

While Wall Street sees potential for a rebound, optimism remains measured. Bitcoin mining margins are still under pressure, and any sustained recovery likely depends on either higher BTC prices, reduced competition, or successful diversification into more stable revenue streams like AI computing.

For investors, MARA represents a hybrid bet—part crypto exposure, part infrastructure play tied to the AI boom. That combination explains why some analysts believe the stock could recover, even as others argue that pure AI names may offer cleaner upside with less downside risk.

In a sector searching for its next growth engine, MARA’s ability to pivot beyond Bitcoin may ultimately determine whether Wall Street’s rebound thesis plays out.