MARA Holdings (MARA) is in the spotlight after agreeing to acquire Long Ridge Energy & Power for US$1.5b. The move shifts the company toward energy backed digital infrastructure and data center development.

The stock has pulled back in the last week despite the Long Ridge announcement. However, the 30-day share price return of 18.01% and 90-day gain of 59.18% suggest momentum has recently been building, even as the 1-year total shareholder return is down 10.91%.

If you are looking beyond MARA’s repositioning into energy backed digital infrastructure, it could be worth scanning other companies riding similar power hungry compute trends through the 48 AI infrastructure stocks

With MARA still loss making, yet trading below the average analyst price target of US$17.57, the question is simple: is the recent pullback setting up a mispriced entry, or has the market already priced in the transformation?

Most Popular Narrative: 23.2% Undervalued

At a last close of $13.96 versus a narrative fair value of $18.17, the most followed view sees meaningful upside, built on a detailed earnings and margin roadmap.

Ongoing global digital transformation and heightened enterprise focus on data sovereignty and cybersecurity are driving demand for hybrid, sovereign-edge infrastructure, MARA's geographic diversification and partnerships with governments and energy companies, especially in emerging markets, are expected to open up significant new addressable markets, boosting top-line growth and reducing reliance on U.S. operations.

Curious what sits behind that projected revenue mix shift and earnings bridge, including the margin profile and future valuation multiple the narrative leans on.

Result: Fair Value of $18.17 (UNDERVALUED)

However, the story could shift quickly if Bitcoin mining economics weaken further, or if large AI and hyperscale leases continue to take longer to materialize.

Next Steps

Given the mix of optimism and concern, it makes sense to inspect the numbers yourself and decide how comfortable you are with MARA’s risk profile, especially by reviewing its 1 important warning sign.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.