Will Earnings Trigger a Short Squeeze Rally for Marathon Digital (MARA) Stock?


  • Marathon Digital (MARA) stock is rallying for a second straight day. The shares have been lifted by Bitcoin’s (BTC-USD) surge.
  • The crypto miner is due to report its Q4 results tomorrow.
  • MARA could undergo a short-covering rally since 22% of its shares are being sold short.
MARA stock - Will Earnings Trigger a Short Squeeze Rally for Marathon Digital (MARA) Stock?

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Marathon Digital (NASDAQ:MARA), a red-hot crypto mining company, is once again trending on social media websites and business news outlets today. MARA stock is soaring for a second straight day after Bitcoin (BTC-USD) rose above $57,000. MARA also owns a great deal of Bitcoin.

Further, the firm is reporting its fourth-quarter financial results after the market closes tomorrow, and the company is being viewed by some as a short-squeeze candidate.

Bitcoin’s Rally Is Boosting MARA Stock

The cryptocurrency soared about 10% over the 24 hours that ended at 9 a.m. ET this morning. One of the catalysts for the rally was the decision by MicroStrategy (NASDAQ:MSTR), another major crypto owner, to buy “3,000 bitcoins for… $155 million.” According to Reuters, Bitcoin exchange-traded funds (ETFs), which were permitted by the Securities and Exchange Commission (SEC) for the first time last month, are also boosting Bitcoin’s value.

Bitcoin’s value has now reached its highest level in more than two years, and it has jumped 30% so far in 2024.

Marathon’s Q4 Results and Its Potential Short-Covering Rally

As noted earlier, MARA is due to report its fourth quarter financial results tomorrow after the market closes. While the company’s earnings could boost its shares, Zack’s Equity Research has reported that Marathon’s past Q4 results have come in below analysts’ average estimates nearly two-thirds of the time.

However, 22% of the shares of MARA stock are being sold short. Additionally, nearly 39% of the shares traded outside of the major exchanges were sold short yesterday, according to Fintel. Given these points, some believe that MARA could be boosted by a huge short-squeeze rally.

The Price Action of MARA Stock

In the five days heading into today, MARA stock advanced 19%. In the previous month, it climbed 61%, and it advanced 136% in the last three months.

On the date of publication, Larry Ramer 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.

Larry Ramer has conducted research and written articles on U.S. stocks for 15 years. He has been employed by The Fly and Israel’s largest business newspaper, Globes. Larry began writing columns for InvestorPlace in 2015. Among his highly successful, contrarian picks have been SMCI, INTC, and MGM. You can reach him on Stocktwits at @larryramer.

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