Marathon Digital Holdings (NASDAQ: MARA) witnessed a significant surge in stock value this week, as shares of the Bitcoin mining company soared by 12.77%, according to data from Finviz.
The recent increase in the stock price of Marathon Digital (MARA) coincides with the ongoing bullish trend of Bitcoin. Bitcoin, the leading cryptocurrency, has rallied by 9.3% over the past week.
Marathon Digital (NASDAQ: MARA) Benefits from Bitcoin’s Rise
Bitcoin is trading at around $51,500 per token, pushing its market capitalization back above the $1 trillion mark. This marks the first time since November 2021 that Bitcoin’s market capitalization has reached this level.
It’s no surprise that Marathon Digital’s share price increased significantly this week, considering its primary focus on Bitcoin mining. Earlier this month, the company reported impressive mining results for January, including a 58% year-over-year growth in mined Bitcoin tokens, totaling 1,084 tokens.
The synergy between Marathon Digital’s promising mining report and Bitcoin’s valuation surge has resulted in significant gains for the company’s stock, now boasting a 239% increase over the past year.
Marathon’s Bitcoin Strategy Succeeds
Furthermore, the company’s strategic decision to hold onto its Bitcoin reserves has proven wise, with 15,741 unrestricted tokens held at the end of January. Marathon Digital refrained from selling any of them last month, a step that has paid off amidst the bullish momentum in February. In addition, the company purchased 183.5 tokens at an average price of $39,738 per token last month, resulting in significant gains as Bitcoin’s price continues to rise.
Marathon Digital Holdings (NASDAQ: MARA) will report its fourth-quarter earnings after the market closes on February 28.
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.
