Last night, a fresh update from Marathon Digital (NASDAQ:MARA) revealed that the company is hoarding a large quantity of Bitcoin (BTC-USD) and a lot of cash. In the report, Marathon also acknowledged that a severe storm recently affected its power-generating facility in Montana. Still, with MARA stock up about 20%, traders seem to be enthused.
It’s no secret Bitcoin hasn’t been a huge winner so far in 2022. Far from its November 2021 peak of around $69,000, BTC slipped below the key $20,000 threshold not too long ago.
Today, however, the BTC price jumped, even touching $22,000 at one point. This, without a doubt, has been a contributing factor to the market’s enthusiasm for crypto-mining equities like MARA stock.
It’s not just about Bitcoin’s movement, however. Yesterday, Marathon also released a highly encouraging update. Apparently, the company produced a whopping 707 BTC during the second quarter of 2022. That represents a 8% year-over-year (YOY) increase.
Year-to-date (YTD) through June 30, Marathon Digital produced an astounding 1,966 BTC. At the same time, though, the company hasn’t forsaken fiat currency; it reported having $88.7 million in cash on hand as of June 30 as well.
What’s Happening with MARA Stock?
Did MARA stock jump over 20% and break through $8.50 today because Bitcoin revisited $22,000? Or, was it because Marathon reported an astonishingly large BTC production volume, along with a surprisingly strong cash position?
The answer is, probably, all of the above. There’s also a “prevailing despite the challenges” story here. Marathon Chairman and CEO Fred Thiel acknowledged that the company has recently faced “operational obstacles.”
Perhaps the most notable obstacle was a severe storm in June. That damaged the “power generating facility that supplies Marathon’s miners in the region […] causing Marathon’s miners in Montana to go offline,” according to the press release. The impact of this storm reportedly reduced operations in the region to about 6,300 active miners. That makes the company’s aforementioned BTC production stats even more impressive.
What’s next for Marathon Digital? There are likely more obstacles to overcome as well as more aggressive BTC mining — and maybe continued momentum for MARA stock.
On the date of publication, David Moadel did not hold (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.
