MARA Stock Price Increases Over 4% Pre-Market: Why It Happened

By Amit Chowdhry ● Aug 9, 2021
  • The stock price of Marathon Digital Holdings Inc (NASDAQ: MARA) increased by over 4% pre-market. This is why it happened.

The stock price of Marathon Digital Holdings Inc (NASDAQ: MARA) – one of the largest enterprise Bitcoin self-mining companies in North America – increased by over 4% pre-market. There are not any company-specific reports driving the stock price up today so it appears there are external factors at play.

Investors in stock trading platforms are citing the momentum in cryptocurrencies as being the driving force for the stock price increase. The price of the Bitcoin cryptocurrency is up more than 9% over the past week. And Ethereum is up more than 12% over the past week. 

Earlier this month, Marathon Digital Holdings published its unaudited bitcoin (BTC) production and miner installation updates for July 2021. These are the corporate highlights as of August 1, 2021: 

— Produced 442.2 new-minted bitcoins during July 2021, increasing total bitcoin holdings to approximately 6,225.6 with a fair market value of approximately $260.7 million

— Cash on hand was approximately $91.9 million and total liquidity, defined as cash and bitcoin holdings, was approximately $352.6 million

— Received approximately 19,401 S19 Pro ASIC miners from Bitmain year to date with an additional 4,287 S19 Pro ASIC miners currently in transit

— Successfully completed scheduled maintenance and upgrades to the Company’s existing mining fleet as well as the annual inspection of facilities

— Existing mining fleet consists of 19,395 active miners producing 2.09 EH/s

— On August 1, 2021, the company announced the purchase of an additional 30,000 S19j Pro miners from Bitmain, which is expected to increase Marathon’s mining operations to approximately 133,000 miners producing approximately 13.3 EH/s once all miners are deployed

Bitcoin Production Update

As of August 1, 2021, Marathon’s mining fleet has produced approximately 1,288.3 newly minted bitcoins during 2021. By month, the Company’s bitcoin production was as follows:

— January 2021: 50.4 BTC

— February 2021: 43.4 BTC

— March 2021: 97.9 BTC

— April 2021: 162.1 BTC

— May 2021: 226.6 BTC

— June 2021: 265.6 BTC

— July 2021: 442.2 BTC

As a result, Marathon currently holds about 6,225.6 BTC, including the 4,812.66 BTC the company purchased in January 2021 for an average price of $31,168 per BTC. And on August 1, 2021, the fair market value of one bitcoin was approximately $41,870, implying that the approximate fair market value of Marathon’s current bitcoin holdings is approximately $260.7 million.

Disclaimer: This content is intended for informational purposes. Before making any investment, you should do your own analysis.