Bitcoin miner Marathon Digital is rising along with optimism over Bitcoin's long-term future
ByDana Blankenhorn, InvestorPlace ContributorMay 6, 2024, 9:29 am EDT
Bitcoin (BTC-USD) miner Marathon Digital Holdings (NASDAQ:MARA) stock rose 5% over the weekend on optimism over cryptocurrencies.
The stock was due to open at $18.46 per share this morning, its market capitalization over $4.9 billion.
Bitcoin prices surged over the weekend. Early today, each coin was worth $63,500. The total value of Bitcoin is now about $1.26 trillion.
Crypto Heating Up
Not everyone is high on Marathon or crypto. Fintel reports almost 20% of its stock is now being held short. This includes over 50% held off of listed exchanges.
Over the last three months, Bitcoin prices have generally traded in a range of between $60,000 and $65,000 per coin. A recent correction to $59,000 was quickly bought, and the price has been slowly grinding higher. Bulls are worried about greed setting in at $65,000.
The Bitcoin blockchain recently hosted its 1 billionth transaction. The blockchain averages over 178,000 transactions per day.
Marathon said its computers produced 850 new Bitcoin in April. At current prices, that would represent a value of $52.7 million. Marathon hopes to boost its calculation rate by another 25% in 2024.
Marathon said transaction fees also reached a new high around the “halvening,” when the value of solving the Bitcoin cryptographic puzzle was cut in half.
Fellow InvestorPlace contributor Joel Baglole recommended investors buy Marathon ahead of the halvening, which occurred last month. Prices for Bitcoin peaked in late April, but MARA stock has fallen back since.
One bullish sign for Marathon is that it recently signed a consulting contract with the government of Kenya. President William Ruto wants to discuss the country’s regulatory regime and Bitcoin’s energy use with Marathon.
MARA Stock: What Happens Next?
MARA stock will continue to rise and fall with the price of Bitcoin, which remains volatile. Bulls are hoping for more narrow swings that might make it a more popular medium of value exchange.
On the date of publication, Dana Blankenhorn did not hold (either directly or indirectly) any positions in the securities mentioned in this article.The opinions expressed in this article are those of the writer, subject to theInvestorPlace.comPublishing Guidelines.
Dana Blankenhorn has been a financial and technology journalist since 1978. He is the author of Technology’s Big Bang: Yesterday, Today and Tomorrow with Moore’s Law, available at the Amazon Kindle store. Tweet him at @danablankenhorn, connect with him on Mastodon or subscribe to his Substack.
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