When you’re listening to the title Marathon Patent Group (NASDAQ:MARA) for the primary time, you may be curious in regards to the firm and its connection to cryptocurrency. Furthermore, you may be curious as to why MARA inventory has been making such massive strikes with heavy buying and selling volumes these days.
Individuals who may be unfamiliar with Marathon Patent Group would possibly assume that each one the corporate does is apply for patents. If truth be told, the corporate is an formidable up-and-coming title within the subject of cryptocurrency mining.
Actually, Marathon Patent Group is one of the first cryptocurrency mining companies to be listed on the Nasdaq Alternate. The corporate just isn’t solely an early mover within the area, however it’s an aggressive competitor amongst cryptocurrency miners.
Due to this fact, solely agency believers in the way forward for Bitcoin (BTC) and different digital property ought to take an extended place in MARA inventory. With that in thoughts, let’s take a look at Mara’s latest value motion.
A Nearer Have a look at MARA Inventory
Some people would possibly select to make use of MARA inventory as a proxy or substitute for proudly owning Bitcoin. That’s as a result of Mara’s share value tends to comply with the worth of Bitcoin, a minimum of to a sure extent.
I’m not making an attempt to suggest that Mara’s share value precisely corresponds with Bitcoin’s value strikes. Nevertheless, it’s notable that MARA inventory mirrored Bitcoin’s late-2017 bull transfer with a value surge of its personal.
Quick-forward to January of this yr, and MARA inventory is sort of transferring in tandem with Bitcoin as soon as once more. Whereas Bitcoin was famously spiking to $30,000 and past, Mara’s share value was rocketing from the $12 space in December to a 52-week excessive of $28.37 on Jan. 8.
The shares did retrace to the $21 space by early February, nevertheless it’s evident that the bulls are in management general. Nonetheless, it’s necessary to be taught as a lot as you’ll be able to in regards to the firm, fairly than simply assume that the inventory will push increased primarily based on Bitcoin’s bull run.
Increasing the Mining Portfolio
Some individuals would possibly say that “extra is best” in the case of Bitcoin mining tools. That will surely be the case for individuals who consider that the worth of Bitcoin goes to proceed on its upward trajectory.
Marathon Patent Group seems to be placing the “extra is best” credo into motion. As proof of this, the corporate made a large tools buy from Bitmain.
Particularly, Marathon Patent Group inked a take care of Bitmain to purchase 10,000 Antminer S-19j Pro ASIC miners, bringing Mara’s complete to a mind-blowing 33,560 ASIC miners.
The acquisition is a significant improve for Mara, to say the least. Bitmain’s Antminer Gross sales Director of North, Central, and South America Irene Gao elaborated on the tools’s worth:
“Geared up with essentially the most superior chipset at present obtainable, the high-performance and low energy consumption of the miners will considerably broaden the operations of Marathon’s mining enterprise.”
Extra Publicity to Bitcoin
Beforehand, I emphasised the correlation between MARA inventory and the Bitcoin value. That correlation might have been strengthened lately, as Marathon Patent Group isn’t only a miner of Bitcoin now; it’s additionally an investor within the cyrptocirrency.
On Jan. 25, the corporate introduced that it had purchased a whopping 4,812.66 BTC. At the moment, Marathon Patent Group’s mixture buy value for the Bitcoin was $150 million.
Marathon Patent Group Chairman and CEO Merrick Okamoto acknowledged outright that he needs his firm to be the “de facto funding selection” for individuals and establishments looking for publicity to Bitcoin.
That’s not simply bragging. Marathon Patent Group’s large-scale buy reveals that the corporate is severe about proudly owning Bitcoin. In consequence, MARA inventory is changing into one of the vital Bitcoin-centric shares obtainable right now.
The Backside Line
Is it mandatory to love Bitcoin for individuals who purchase MARA inventory? It’s not an absolute requirement, strictly talking. However, it actually doesn’t harm.
Including excessive numbers of Miners and huge Bitcoin holdings are the hallmarks of Marathon Patent Group. When you’re on board with that, then MARA inventory is completely worthy of your consideration.
On the date of publication, David Moadel didn’t have (both instantly or not directly) any positions within the securities talked about on this article.