Marathon Digital (NASDAQ:MARA) stock is climbing higher today after Bitcoin (CCC:BTC-USD) notched a new record high above $71,000.
As of Feb. 29, Marathon Digital controlled 16,930 BTC, per Bitcoin Treasuries. Notably, the firm also acquired two Bitcoin mining sites at the end of last year.
Bitcoin’s Rally and Marathon’s Exposure to BTC
Among the catalysts pushing Bitcoin higher today is the United Kingdom’s decision to allow “investment exchanges to launch crypto-backed exchange-traded notes.” These products will reportedly only be made available to “professional investors.” What’s more, last week saw an inflow of nearly $2 billion into the 10 most valuable U.S. spot Bitcoin exchange-traded funds (ETFs), marking a “two-week low,” per Reuters.
Back in December, Marathon Digital also disclosed its acquisition of two mining facilities with “390 megawatts of capacity” for $178.6 million. These were the first sites fully acquired by Marathon and represent an early step in its plan to grow its portfolio of mining operations.
“By acquiring the sites […] we have an opportunity to reduce our bitcoin production costs at these sites, to capitalize on energy hedging opportunities, and to expand our operational capacity,” said CEO Fred Thiel at the time.
What to Watch for Going Forward
“The next natural target [for Bitcoin] is $100,000,” Hashdex Chief Investment Officer Samir Kerbage told Barron’s recently. That’s certainly an exciting price target. But investors interested in MARA shares should take some care.
According to Barron’s, new Bitcoin ETFs have been the “key force” behind the recent surge of the benchmark cryptocurrency. However, the fact that inflows into these ETFs reached a low last week could mean that BTC is headed for a pullback in the not-too-distant future.
As a result, the owners of MARA stock as well as prospective investors should keep an eye on inflows in the coming weeks.
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.
