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Why is MARA Rising Despite Market Volatility?

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Written by Timothy Sykes Reviewed by Jack Kellogg Fact-checked by Ellis Hobbs

MARA Holdings Inc. is visibly benefitting from a positive market sentiment on Monday, trading up by 3.35 percent. Significant news includes the cryptocurrency markets experiencing a drop in liquidations to their lowest levels, reflecting a stabilizing environment for MARA Holdings, which is strongly tied to the crypto sector. Furthermore, news of resilient sales to China from a Dutch semiconductor giant amidst U.S. restrictions paints a promising picture for tech and associated sectors.

Cryptocurrency’s Big Day:

Candlestick Chart

Live Update at 16:01:52 EST: On Monday, September 23, 2024 MARA Holdings Inc. stock [NASDAQ: MARA] is trending up by 3.35%! Discover the key drivers behind this movement as well as our expert analysis in the detailed breakdown below.

  • Marathon Digital produced 673 bitcoin in August, marking an 11% increase in hash rate from July despite a slight decrease in BTC production and block wins. The company continues to expand its mining operations.

  • Significant surge in major cryptocurrencies, particularly Bitcoin, which has zoomed past $63,000. MARA, with its substantial exposure to this digital asset, is well-poised to benefit from the rally.

  • Bitcoin’s rise to nearly $60,000 has been accompanied by gains in other cryptocurrencies, leading to a 2.8% increase in the CoinDesk Market Index. This positive environment is beneficial for MARA.

Quick overview of Marathon Digital Holdings Inc.’s recent performance

Marathon Digital Holdings, Inc. (NASDAQ: MARA) has been seeing exciting times. August alone saw the mining of 673 bitcoins, translating to an 11% jump in hash rate from the previous month. This isn’t just a fluke; it’s a strategic expansion effort solidifying their place among the top miners in the cryptocurrency space.

However, if we take a look at the multi-day stock data, there are spikes and troughs that paint a vivid tale. For instance, on Sep 23, 2024, the stock closed at $16.07, climbing from a low of $15.36. This upward trend closely shadows the rise in Bitcoin prices, showing a clear correlation between MARA’s market performance and the bullish cryptocurrency market.

But numbers don’t lie. If you dig into the financial strengths, MARA’s efforts and results are laid bare. With a profitability margin like a pretax profit margin at -31.4% and a return on assets (ROA) at -3.69%, it might appear like the company is struggling. Yet, the high leverage ratio of 0.7 and total debt to equity ratio of 0.13 signal a robust financial structure primed to capitalize on the current cryptocurrency surge.

Their Q2 financial report of 2024 supports this optimism. With an EBITDA of -$123.6M, it’s clear the company is pouring resources into expansion and technology. Operating revenue recorded at $145.1M tells a story of growth despite the hefty total expenses of $195.8M.

Financial Growth:

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Let’s put the earnings report into perspective. For those clutching their pearls over the operating income of -$232.4M, consider the booming valuation of Bitcoin. Each mined bitcoin adds to MARA’s assets, pegged at $3.1B as of their last report. Even though the net income shows a distressing -$199.7M, it’s the long-term strategic positioning that has investors abuzz. Their net common stock issuance brought $338.4M to their coffers, fortifying their financial health.

Market Impacts:

So, how do recent market trends and the news of cryptocurrency surges play into this? Bitcoin crossing the $63,000 threshold isn’t just a number; it’s a narrative of strengthened trust in digital assets. MARA, being tethered to Bitcoin’s hip, reels in the benefits, akin to a surfer riding a monstrous wave.

The company’s tangible expansion efforts are bearing fruit, as seen in their increased Bitcoin production and hash rates. Every uptick in Bitcoin prices directly amplifies MARA’s market value, validating the faith of those investing in the company’s future.

Cryptocurrency Surge: What It Means for MAra

The cryptocurrency market is notorious for its volatility. Yet, when Bitcoin and other digital assets experience a surge, the ripple effects are monumental. Recently, Bitcoin’s journey past the $63,000 mark has been a notable milestone. This price explosion has a profound impact on companies deeply entrenched in the crypto space, like MARA.

More Breaking News

Bitcoin’s Meteoric Rise:

Bitcoin’s significant surge, surpassing that $63,000 milestone, is more than just a spike in numbers. It reflects growing institutional trust and retail investor interest. For MARA, this means a direct positive impact on its stock prices. Increased Bitcoin mining means higher revenue potential, as each mined coin adds to the company’s portfolio of digital assets.

Through the lens of a miner like MARA, each Bitcoin price rally isn’t just a market trend; it’s an opportunity for considerable profit. The increased hash rate announced in August showcases their capability to leverage these market upswings for optimal gain.

Impact on MARA’s Stock:

Looking at MARA’s recent stock performance, evident patterns emerge. Peaks in Bitcoin prices often align with periods of increased buying activity in MARA’s stock. Following Bitcoin’s surge to $63,000, MARA experienced a corresponding uptick, reaching a close of $16.07 on Sep 23, 2024, up from the previous lows earlier in the month. These fluctuations illustrate the symbiotic relationship between MARA’s fortunes and Bitcoin’s value trajectory.

The slight dips seen in Bitcoin production didn’t deter investor optimism, likely because of the overarching increase in hash rate. The company’s commitment to expansion and technological advancement continues to buoy investor confidence, spurred further by the cryptocurrency market’s bullish trends.

Broader Market Influence:

The broader market trends also contribute significantly to MARA’s performance. For instance, the Nasdaq 100, S&P 500, and Dow Jones Industrial Average’s positive movements have anchored investor confidence in related stocks, including MARA. This alignment with major market indices legitimizes the cryptocurrency market’s role in mainstream finance.

MARA’s Strategic Moves:

MARA’s proactive approach to navigating the crypto market’s ebbs and flows includes consistent operational tuning and technological upgrades. Their recent mining performance aligns perfectly with the bullish crypto market, ensuring they remain a top contender among mining firms.

Cryptos in Limelight: Driving MARA’s Market Dynamics

Let’s dive deeper into the ripple effects of major cryptocurrency news on MARA’s market visibility and investor sentiment.

High Impact News on MARA:

Bitcoin’s resilience has continually reinforced its status as digital gold, spurring significant sector-wide interest. Recent reports have highlighted Bitcoin’s surge beyond $60,000 and its corresponding positive impact on related stocks like MARA.

For example, Bitcoin trading volume shot up by about 9%, and the overall market value rose by 3.3%. These figures are not arbitrary; they reflect concrete market dynamics. When Bitcoin enjoys such upward momentum, mining entities like MARA see proportional benefits in stock performance. This pattern underscores the cog in the larger cryptocurrency wheel that MARA represents.

Resilience in Dips:

Even amidst mixed results in the broader digital asset market, Bitcoin’s ability to show strength resonates with MARA. The interplay of gains and losses among top cryptocurrencies doesn’t dampen MARA’s prospects because of its strategic positioning in Bitcoin mining. This resilience paves the way for MARA to capitalize on broader positive trends despite occasional market dips.

MARA’s Continued Expansion:

MARA is not just riding the crypto surge passively. Their continuous expansion into digital asset mining signifies active participation in the market’s growth. Each advancement in hash rates and production, even with minor hiccups in actual Bitcoin output, translates into long-term strategic gains.

In conclusion, MARA showcases how well-timed market strategies, bolstered by favorable cryptocurrency trends and robust expansion plans, can synergize to sustain and elevate stock valuation. The seamless blend of financial strength and market agility places Marathon Digital Holdings indelibly on the radar of savvy investors. This alignment with booming cryptocurrency trends projects a promising horizon for MARA, reinforcing the potential benefits gleaned from sustained market participation.

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Timothy Sykes

Tim Sykes is a penny stock trader and teacher who became a self-made millionaire by the age of 22 by trading $12,415 of bar mitzvah money. After becoming disenchanted with the hedge fund world, he established the Tim Sykes Trading Challenge to teach aspiring traders how to follow his trading strategies. He’s been featured in a variety of media outlets including CNN, Larry King, Steve Harvey, Forbes, Men’s Journal, and more. He’s also an active philanthropist and environmental activist, a co-founder of Karmagawa, and has donated millions of dollars to charity. Read More

* Results are not typical and will vary from person to person. Making money trading stocks takes time, dedication, and hard work. There are inherent risks involved with investing in the stock market, including the loss of your investment. Past performance in the market is not indicative of future results. Any investment is at your own risk. See Terms of Service here

The available research on day trading suggests that most active traders lose money. Fees and overtrading are major contributors to these losses.

A 2000 study called “Trading is Hazardous to Your Wealth: The Common Stock Investment Performance of Individual Investors” evaluated 66,465 U.S. households that held stocks from 1991 to 1996. The households that traded most averaged an 11.4% annual return during a period where the overall market gained 17.9%. These lower returns were attributed to overconfidence.

A 2014 paper (revised 2019) titled “Learning Fast or Slow?” analyzed the complete transaction history of the Taiwan Stock Exchange between 1992 and 2006. It looked at the ongoing performance of day traders in this sample, and found that 97% of day traders can expect to lose money from trading, and more than 90% of all day trading volume can be traced to investors who predictably lose money. Additionally, it tied the behavior of gamblers and drivers who get more speeding tickets to overtrading, and cited studies showing that legalized gambling has an inverse effect on trading volume.

A 2019 research study (revised 2020) called “Day Trading for a Living?” observed 19,646 Brazilian futures contract traders who started day trading from 2013 to 2015, and recorded two years of their trading activity. The study authors found that 97% of traders with more than 300 days actively trading lost money, and only 1.1% earned more than the Brazilian minimum wage ($16 USD per day). They hypothesized that the greater returns shown in previous studies did not differentiate between frequent day traders and those who traded rarely, and that more frequent trading activity decreases the chance of profitability.

These studies show the wide variance of the available data on day trading profitability. One thing that seems clear from the research is that most day traders lose money .

Millionaire Media 66 W Flagler St. Ste. 900 Miami, FL 33130 United States (888) 878-3621 This is for information purposes only as Millionaire Media LLC nor Timothy Sykes is registered as a securities broker-dealer or an investment adviser. No information herein is intended as securities brokerage, investment, tax, accounting or legal advice, as an offer or solicitation of an offer to sell or buy, or as an endorsement, recommendation or sponsorship of any company, security or fund. Millionaire Media LLC and Timothy Sykes cannot and does not assess, verify or guarantee the adequacy, accuracy or completeness of any information, the suitability or profitability of any particular investment, or the potential value of any investment or informational source. The reader bears responsibility for his/her own investment research and decisions, should seek the advice of a qualified securities professional before making any investment, and investigate and fully understand any and all risks before investing. Millionaire Media LLC and Timothy Sykes in no way warrants the solvency, financial condition, or investment advisability of any of the securities mentioned in communications or websites. In addition, Millionaire Media LLC and Timothy Sykes accepts no liability whatsoever for any direct or consequential loss arising from any use of this information. This information is not intended to be used as the sole basis of any investment decision, nor should it be construed as advice designed to meet the investment needs of any particular investor. Past performance is not necessarily indicative of future returns.

Citations for Disclaimer

Barber, Brad M. and Odean, Terrance, Trading is Hazardous to Your Wealth: The Common Stock Investment Performance of Individual Investors. Available at SSRN: “Day Trading for a Living?”

Barber, Brad M. and Lee, Yi-Tsung and Liu, Yu-Jane and Odean, Terrance and Zhang, Ke, Learning Fast or Slow? (May 28, 2019). Forthcoming: Review of Asset Pricing Studies, Available at SSRN: “https://ssrn.com/abstract=2535636”

Chague, Fernando and De-Losso, Rodrigo and Giovannetti, Bruno, Day Trading for a Living? (June 11, 2020). Available at SSRN: “https://ssrn.com/abstract=3423101”