Marathon Digital (NASDAQ: MARA) stock surged over 6% in the intraday trading Monday. This surge comes on the heels of a notable upward momentum observed in the price of Bitcoin (BTC/USD) following the recent halving event.
Bitcoin-mining stocks, notably Marathon Digital (MARA), have attracted attention from investors following the recent halving event.
Last Friday, the Bitcoin network completed its fourth halving. This scheduled process within the Bitcoin protocol occurs approximately every four years or after every 210,000 blocks.
The halving event results in a significant reduction in miner rewards for validating transactions. This time, miner rewards have been slashed from 6.25 bitcoin to 3.125 bitcoin. This reduction in rewards has implications for miners like Marathon Digital, as it impacts their profitability and the economics of Bitcoin mining.
Bitcoin’s price has shown volatility in the past few weeks as the halving approaches. Notably, historical data highlights a tendency for crypto markets to rally in the months following a halving event.
JPMorgan analyst Reginald Smith has weighed in on the impact of the halving event on mining companies. He believes that it will serve as a significant test for the industry. However, Smith views the halving as a positive development for the strongest operators in the long term, CNBC reports.
In a recent note to clients, Smith stated,
“All else equal, the halving will cut industry revenues in half, triggering a wave of consolidation and business closures, while (hopefully) rationalizing the network hash rate and industry capex, which is ultimately good for the remaining operators.”
Marathon Digital (NASDAQ: MARA) Stock Movement
At the time of this report, MARA stock is trading at $17.55, showing a 6.36% increase from the previous trading session. This week, it has surged in value by 15.84%. Trading activity has seen 66,955,472 (66.95 million) shares change hands, surpassing the average daily volume of 65.79 million.
Edward Cooke is a financial analyst, freelance writer, and editor. He has six years of experience in financial journalism. He has an in-depth understanding of equities markets, tracking major indices and providing real-time analysis on stock price movements, corporate earnings, and market sentiment.
