In the event you’re listening to the title Marathon Patent Group (NASDAQ:MARA) for the primary time, you may be curious in regards to the firm and its connection to cryptocurrency. Furthermore, you may be curious as to why MARA inventory has been making such large strikes with heavy buying and selling volumes recently.
Individuals who may be unfamiliar with Marathon Patent Group may assume that every one the corporate does is apply for patents. Really, the corporate is an bold up-and-coming title within the subject of cryptocurrency mining.
The truth is, Marathon Patent Group is one of the first cryptocurrency mining companies to be listed on the Nasdaq Change. The corporate isn’t solely an early mover within the house, however it’s an aggressive competitor amongst cryptocurrency miners.
Due to this fact, solely agency believers in the way forward for Bitcoin (BTC) and different digital belongings ought to take an extended place in MARA inventory. With that in thoughts, let’s take a look at Mara’s current value motion.
A Nearer Take a look at MARA Inventory
Some of us may select to make use of MARA inventory as a proxy or substitute for proudly owning Bitcoin. That’s as a result of Mara’s share value tends to comply with the value of Bitcoin, a minimum of to a sure extent.
I’m not making an attempt to suggest that Mara’s share value precisely corresponds with Bitcoin’s value strikes. Nevertheless, it’s notable that MARA inventory mirrored Bitcoin’s late-2017 bull transfer with a value surge of its personal.
Quick-forward to January of this 12 months, and MARA inventory is nearly transferring in tandem with Bitcoin as soon as once more. Whereas Bitcoin was famously spiking to $30,000 and past, Mara’s share value was rocketing from the $12 space in December to a 52-week excessive of $28.37 on Jan. 8.
The shares did retrace to the $21 space by early February, however it’s evident that the bulls are in management total. Nonetheless, it’s essential to study as a lot as you possibly can in regards to the firm, somewhat than simply assume that the inventory will push greater based mostly on Bitcoin’s bull run.
Increasing the Mining Portfolio
Some individuals may say that “extra is best” in relation to Bitcoin mining tools. That would definitely be the case for individuals who consider that the value of Bitcoin goes to proceed on its upward trajectory.
Marathon Patent Group seems to be placing the “extra is best” credo into motion. As proof of this, the corporate made a large tools buy from Bitmain.
Particularly, Marathon Patent Group inked a take care of Bitmain to purchase 10,000 Antminer S-19j Pro ASIC miners, bringing Mara’s whole to a mind-blowing 33,560 ASIC miners.
The acquisition is a significant improve for Mara, to say the least. Bitmain’s Antminer Gross sales Director of North, Central, and South America Irene Gao elaborated on the tools’s worth:
“Geared up with probably the most superior chipset at present obtainable, the high-performance and low energy consumption of the miners will considerably broaden the operations of Marathon’s mining enterprise.”
Extra Publicity to Bitcoin
Beforehand, I emphasised the correlation between MARA inventory and the Bitcoin value. That correlation could have been strengthened not too long ago, as Marathon Patent Group isn’t only a miner of Bitcoin now; it’s additionally an investor within the cyrptocirrency.
On Jan. 25, the corporate introduced that it had purchased a whopping 4,812.66 BTC. At the moment, Marathon Patent Group’s mixture buy value for the Bitcoin was $150 million.
Marathon Patent Group Chairman and CEO Merrick Okamoto said outright that he desires his firm to be the “de facto funding alternative” for individuals and establishments searching for publicity to Bitcoin.
That’s not simply bragging. Marathon Patent Group’s large-scale buy exhibits that the corporate is critical about proudly owning Bitcoin. In consequence, MARA inventory is changing into one of the crucial Bitcoin-centric shares obtainable as we speak.
The Backside Line
Is it obligatory to love Bitcoin for individuals who purchase MARA inventory? It’s not an absolute requirement, strictly talking. However, it definitely doesn’t damage.
Including excessive numbers of Miners and enormous Bitcoin holdings are the hallmarks of Marathon Patent Group. In the event you’re on board with that, then MARA inventory is completely worthy of your consideration.
On the date of publication, David Moadel didn’t have (both straight or not directly) any positions within the securities talked about on this article.