Bitcoin Miner Mara Holdings (Mara) shares surpassed peers on Friday, even after its first quarter, the results missed Wall Street’s estimates as the company’s focus on lowering costs is seen as positive of analysts.

Jefferies -Analysts said that with Bitcoin BTC$103.203.90 Price improvement in the second quarter of this year and Mara focusing on more sustainable energy sources such as sun and flared gas -powered data centers, power costs should fall in the coming quarters and help the margins.

“Mara is expanding the infrastructure on its 114 MW wind farm and has fully activating her 25 MW micro -blended gas data center, both of which were to reduce power costs,” analyst Jonathan Petersen said in a note.

If the mining company continues to buy more of such power sources, it would help the company’s profitability, Petersen wrote. “Continued acquisition of power assets is expected to further reduce energy costs, expand the margins and better prepare the company for the next halving.” Peterson repeated his holding assessment on the stock while raising the price target for $ 16 from $ 13.

Bitcoin mining, once a very profitable business, has seen its profit margins go down drastically during the last bear market and even more after the recent halving that reduced the reward with half. To make things worse, rising power costs for mining have continued to torment the margins.

This clamp has forced most miners to diversify their business to other sources of income, including hosting artificial intelligence (AI) and High-Performance Computing (HPC) data centers. Mara was among the few miners who did not jump into the AI ​​sector right away, but rather focused on other opportunities for diversification, such as transaction income services, mining that bought Bitcoin in the open market and lowers power costs via green energy sources.

The last point of lower power cost seemed to have hit a chord with the market.

HC Wainwright analyst Kevin Dede said this is this that separates Mara from her mining: “Comment last night made it clear that the company remains focused on technology development in its core -lot conversion … with a peeled eye to run energy costs to zero.”

“We are reinforcing this in distancing Mara’s strategy against mining competitors that gently or vigorously migrate their mining vocalists to tackle the rapidly evolving HPC opportunity,” he said.

Dede, who has a buying rating and price target of $ 28, also seemed to repeat the mood that Mara would be able to lower the cost of focusing on these types of power sources.

“Our opinion about it aside for now, we agree with Mara’s overall goal of creating opportunities by exploiting untapped power or improving the effectiveness of the used power,” he said.

Mara’s shares rose as much as 9% on Friday, while Coinshares Valkyrie Bitcoin Miners ETF (WGMI) has fallen approx. 0.3%.

Read more: Mara Holdings cut to sell at Compass Point prior to earnings, with reference to cash burning