Marathon, a Bitcoin mining company, experiences a significant 23% increase in shares despite a 42% decline in production.
Marathon Digital Holdings Inc (MARA) experienced a significant surge in shares, rising by 23% to $21.58, as Bitcoin approached the $47,000 mark. This upward trend is consistent with the performance of other US stock market crypto-related companies. Despite reporting a decrease in mined BTC for January, with only 1,084 BTC compared to the figures reported in December 2023, representing a 42% drop, Marathon’s positive response to Bitcoin’s price hike is noteworthy. The company attributed the decline to weather-related curtailment and equipment failures. Canaan Technology (CAN) saw a 20% increase to $1.54, Bitdeer (BTDR) rose 16.6% to $8.25, Coinbase (COIN) climbed 8.6% to $132.5, and MicroStrategy (MSTR) jumped 15.7% to $587. This surge in crypto-related companies is fueled by the enthusiasm surrounding Bitcoin’s price surge and the significant trading volumes observed in spot Bitcoin exchange-traded funds, which recently surpassed $1 billion. The market’s buoyancy and the appeal of cryptocurrency as an investment are further supported by expectations of potential rate cuts by the Federal Reserve later this year, as suggested by comments from Boston Fed President Susan Collins and Cleveland Fed President Loretta Mester.
