Recent reports demonstrate that Marathon Digital has been eager to expand its business.
The stock of Bitcoin mining company Marathon Digital Holdings Inc (NASDAQ: MARA) has so far seen remarkable growth in 2023. This follows after it surged 628.82% since January 1 to bring its current price to $26.47 on MarketWatch.
Although the stock price shows a major decline from its all-time high of $166.40, it also indicates an appreciable gain over the last 12 months.
The rise of MARA, however, has been linked to two separate events that have grown increasingly popular and are believed to be responsible for the buzz around Bitcoin (BTC) and its future price.
What Analysts Say About Marathon Digital’s (MARA) Stock Rise
According to experts, the ongoing MARA surge may be closely tied to a potential approval of a spot Bitcoin exchange-traded fund (ETF) in the United States. The U.S. Securities and Exchange Commission (SEC) is expected to give a verdict in that regard by January 10, 2024, which in turn, is expected to cause a massive inflow of capital. Major applicants for the spot Bitcoin ETF are top asset management firms such as Black Rock, Grayscale, and others.
Another reason for the positive sentiment around the BTC price is the halving event which comes up by April 2024. Once every four years or thereabout, the rate at which new Bitcoins are released into circulation is cut in half. This is to ensure scarcity and also make room for demand to remain on the high.
Interestingly, however, historical records show that the halving event has always triggered a price surge. So, expectations are that the next one will not be an exception.
Firm Eyes Expansion
Meanwhile, recent reports also show that Marathon Digital has been eager to expand its business. In line with that ambition, the firm recently announced reaching an agreement to buy two operational Bitcoin mining sites. And according to the announcement, the acquisition deal was worth $178.6 million, to bring Marathon’s operational capacity to 390 megawatts.
With the new acquisition, Marathon may just have transitioned from an asset-light organization to the manager of a diverse portfolio of Bitcoin mining operations.
Marathon Digital continues to experience growth on all fronts. It has managed to increase its capacity, which would most likely increase its Bitcoin mining productivity. Coinspeaker also reported last month that the firm saw an over 670% spike in its Q3 revenue.
Considering all other factors, it may be safe to say that more growth is expected for the mining company shortly.
