MARA Stock: Why Red-Hot Marathon Digital Gained 10% Today

By April 28, 2021Bitcoin Business
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Today, investors in Marathon Digital (NASDAQ:MARA) and MARA stock are seeing a lot of green. Indeed, shares of Marathon closed higher by more than 10%.

Concept art of crypto mining with little figuring and a Bitcoin (BTC) token.

As one of the largest self-mining Bitcoin (CCC:BTC-USD) companies in North America, Marathon is looked to as a bellwether stock by many crypto investors. Accordingly, for those who believe Bitcoin prices could rally from here, MARA stock is one equity that crypto investors will likely be piling into.

Why?

Well, crypto mining companies have higher leverage to underlying cryptocurrencies than the tokens and coins themselves. As prices rise, these miners receive a disproportionate bottom-line boost. Similar to gold miners, crypto miners are higher-leverage plays on the price of the underlying commodity.

In addition to the broad-based bullish sentiment playing into crypto mining stocks like Marathon right now, there are a couple other newsworthy items investors are pricing in today. Let’s take a look at what’s going on with MARA stock right now.

Investors Pricing In Positive Catalysts in MARA Stock Today

On Monday, Marathon announced a corporate shuffle.

Marathon announce that Fred Thiel will be taking over as CEO, effective immediately. This move appears to be viewed very positively by the markets. Since the announcement, shares of MARA stock have soared approximately 30% from Friday’s lows.

According to the press release, Mr. Thiel “has a long history of successfully leading and growing organizations in a variety of industries, and he has a uniquely pertinent and deep understanding of cryptocurrency and blockchain technology.”

Of course, this news also coincided with a sharp improvement in Bitcoin prices since the weekend.

In addition to these two catalysts, Marathon also announced it will be participating in Forbes’ upcoming cryptocurrency webinar tomorrow. This webinar aims at educating investors on how to directly and indirectly invest in crypto.

On the date of publication, Chris MacDonald did not have (either directly or indirectly) any positions in the securities mentioned in this article.

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