According to recent reports, Marathon Digital is eager to expand its business.
Shares of Bitcoin mining company Marathon Digital Holdings Inc (NASDAQ: MARA) have seen notable growth so far in 2023. This follows a 628.82% surge since January 1 to its current price of $26.47 on MarketWatch.
The stock is down significantly from its all-time high of $166.40, but has shown significant gains over the past 12 months.
However, the rise of MARA has become increasingly popular and is linked to two separate events that are believed to be creating buzz for Bitcoin (BTC) and its future price.
What Analysts Are Saying About Marathon Digital’s (MARA) Stock Rise
According to experts, the ongoing MARA surge could be closely tied to the potential approval of a U.S. spot Bitcoin exchange-traded fund (ETF). The U.S. Securities and Exchange Commission (SEC) plans to issue a ruling on this by January 10, 2024, and a large inflow of funds is expected accordingly. The main supporters of spot Bitcoin ETFs are top asset management companies such as Black Rock, Grayscale, etc.
Another reason for the positive sentiment towards the BTC price is the halving event scheduled for April 2024. Once every four years, the rate of new Bitcoins in circulation is halved. This is to ensure scarcity and make room for demand to remain high.
But interestingly, historical records show that halving events have always triggered price spikes. So, it is expected that the next work will be no exception.
Firm eye dilation
Meanwhile, recent reports suggest that Marathon Digital is keen to expand its business. In line with these ambitions, the company recently announced that it had agreed to purchase two operating Bitcoin mining sites. And according to the announcement, the acquisition deal is valued at $178.6 million, bringing Marathon’s operating capacity to 390 MW.
The new acquisition may have transformed Marathon from an asset-light organization into a diversified portfolio manager of Bitcoin mining operations.
Marathon Digital continues to experience growth on all fronts. It is likely that increasing capacity will increase Bitcoin mining productivity. Coinspeaker also reported last month that the company’s third-quarter revenue surged more than 670%.
Considering all other factors, it’s safe to say that the mining company is expected to see more growth soon.
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