Marathon Digital Shares Surge Despite Decrease in Mined BTC
Despite a considerable decrease in mined BTC in January, Marathon Digital Holdings Inc (MARA) shares surged by 23% to reach $21.58, following Bitcoin’s rise to $46,000. This upward trend was seen across all U.S. stock market crypto-related companies.
In January, Marathon reported a negative production rate, mining only 1,084 BTC, a 42% decrease compared to December 2023. The company attributed this decline to weather-related curtailment and equipment failures causing site outages. However, Marathon’s CEO, Fred Thiel, expressed confidence in improving the hash rate over the next few weeks.
“Our team is addressing the short-term disruptions and working to bring our sites back to full strength. We expect hash rate to improve over the next few weeks.”
– Marathon Digital CEO Fred Thiel
Marathon’s positive response mirrors the performance of other crypto-related companies. Canaan Technology (CAN) rose by 20%, Bitdeer (BTDR) increased by 16.6%, Coinbase (COIN) climbed by 8.6%, and MicroStrategy (MSTR) jumped by 15.7%, according to Google Finance.
The enthusiasm surrounding Bitcoin’s price surge is further fueled by significant trading volumes observed in spot Bitcoin exchange-traded funds, surpassing $1 billion recently. BlackRock and Fidelity are leading the charge in this regard. Additionally, expectations of potential rate cuts by the Federal Reserve later this year contribute to the market’s buoyancy and cryptocurrency’s investment appeal.
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