Bitcoin miner Marathon Digital (NASDAQ: MARA) has faced significant challenges in 2024, with the Bitcoin halving event reducing mining rewards by half and doubling mining complexity. The MARA stock has suffered a 30% decline year-to-date as a result. However, market analysts believe the downside for MARA stock is limited in the near term and could be poised for a substantial recovery.

Macquarie recently issued a positive recommendation for Marathon Digital stock, highlighting the company’s leadership in the crypto mining industry. The report noted that Marathon not only excels in mining but also provides physical and digital infrastructure, including its mining pool, miner firmware, an Auradine stake, and advanced cooling technology.

Marathon Digital aims to expand its operational capacity to 50 EH/s by the end of 2024. The company is also focusing on building a strong social license through innovative energy harvesting efforts in stranded gas and heat recycling.

The MARA stock has attracted attention from institutional investors, with Canada’s Public Sector Pension Investment Board recently purchasing 600,518 MARA shares valued at nearly $12 million. The firm now owns 0.21% of Marathon Digital.

Currently trading at $16.14, MARA stock has been in an accumulation range of $13-$16 for some time. Analysts predict a potential breakout, with some suggesting a possible 3x rally if Bitcoin prices resume their upward trajectory towards $90,000.

Marathon Digital is also making strides in the AI sector. CEO Fred Thiel recently explained how the company’s two-phase immersion cooling technology could benefit the AI industry by reducing water consumption in cooling infrastructure.

In addition to its technological advancements, Marathon Digital has been actively acquiring Bitcoin. Last month, the company announced the conversion of $250 million in convertible notes to Bitcoin, further solidifying its position in the cryptocurrency market.

As the crypto mining industry continues to evolve, Marathon Digital appears well-positioned to capitalize on emerging opportunities in both the blockchain and AI sectors.