The crypto crash this morning is sparing no one. As Bitcoin (CCC:BTC-USD) continues to lead the market down, other related investments are getting hit. However, there is one noteworthy play that is (mostly) withstanding the drop off. Crypto mining stocks are suffering today, but a new report from Marathon Digital (NASDAQ:MARA) is helping buoy MARA stock through the storm.
Coins and tokens are facing hefty volatility today. Bitcoin, after reaching a new all-time high in November, is falling back down to earth at breakneck speeds. Today, the No. 1 coin is down 8%, bringing the BTC price down below $43,000. The correction, as is typical of Bitcoin, is causing a ripple effect across the industry. Now, altcoins are losing anywhere from 5% to 10%, and some are losing far more.
Crypto miners are suffering at the hands of the Bitcoin dip as well. After all, the price of the asset these companies are striving to accumulate is dropping by thousands of dollars each week. Of course, these companies and their investors are quite bullish on Bitcoin prices in the long run. But, short-term volatility is enough to spook many into selling.
There is one silver lining, though. While Hut 8 (NASDAQ:HUT) and Riot Blockchain (NASDAQ:RIOT) mount losses, Marathon Digital is staying largely stable today. With its peers dropping 2.5%-3% apiece, MARA stock is down just slightly.
Where Does the MARA Stock Strength Come From?
What is it that is allowing MARA stock to keep its head mostly above water? After all, on top of the market volatility, the stock is also facing adversity as analysts trim their price targets.
Well, it seems that the company’s recent report on December mining is giving investors some confidence in MARA stock today.
The company released insight into its December mining figures this week. As it turns out, there’s lots for investors to be happy about. Marathon Digital is accumulating BTC at a jaw-dropping rate; the company says it mined 484.5 BTC in the month of December alone. Even at current rates, that equates to almost $21 million.
The report points to a vast uptick in assets mined over November. With only 196 BTC mined in November, December’s payload represents nearly half of all Bitcoin mined by the company in Q4. And with 78,000 mining machines coming into the company’s hands, one can expect this pace to only pick up as Q1 carries on.
On the date of publication, Brenden Rearick did not have (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.
