For those who’re listening to the identify Marathon Patent Group (NASDAQ:MARA) for the primary time, you could be curious in regards to the firm and its connection to cryptocurrency. Furthermore, you could be curious as to why MARA inventory has been making such massive strikes with heavy buying and selling volumes recently.
Individuals who could be unfamiliar with Marathon Patent Group would possibly suppose that every one the corporate does is apply for patents. Truly, the corporate is an formidable up-and-coming identify within the area of cryptocurrency mining.
The truth is, Marathon Patent Group is one of the first cryptocurrency mining companies to be listed on the Nasdaq Trade. The corporate is just not solely an early mover within the area, 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 property 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 people would possibly 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 observe the worth of Bitcoin, at the very least to a sure extent.
I’m not making an attempt to suggest that Mara’s share value precisely corresponds with Bitcoin’s value strikes. Nonetheless, 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 yr, and MARA inventory is sort of 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, nevertheless it’s evident that the bulls are in management general. Nonetheless, it’s vital to study as a lot as you’ll be able to in regards to the firm, moderately than simply assume that the inventory will push increased based mostly on Bitcoin’s bull run.
Increasing the Mining Portfolio
Some folks would possibly say that “extra is best” in terms of Bitcoin mining tools. That will surely be the case for many who imagine that the worth 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 complete to a mind-blowing 33,560 ASIC miners.
The acquisition is a serious 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 presently accessible, the high-performance and low energy consumption of the miners will considerably increase 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 might 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 folks and establishments searching for publicity to Bitcoin.
That’s not simply bragging. Marathon Patent Group’s large-scale buy exhibits that the corporate is severe about proudly owning Bitcoin. Consequently, MARA inventory is turning into probably the most Bitcoin-centric shares accessible right now.
The Backside Line
Is it needed to love Bitcoin for many who purchase MARA inventory? It’s not an absolute requirement, strictly talking. However, it actually doesn’t harm.
Including excessive numbers of Miners and enormous Bitcoin holdings are the hallmarks of Marathon Patent Group. For those who’re on board with that, then MARA inventory is totally 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.