Bitcoin is hot again and back over $10k again. For many, they don’t want to deal with BTC wallets and possibly losing their Bitcoins. The better alternative is to own Bitcoin stocks and at the top of the list is MARA Stock – Marathon Patent Group, which trades on the NASDAQ.
Investors piled into MARA stock on Monday after Bitcoin rose to $12k over the weekend. MARA stock climbed to over $4 but has since settled back down. We still believe there’s a lot more room for MARA stock to run, especially when you look at the last Bitcoin bull run when MARA stock hit $40 a share. Just take a look at what happened in December of 2017.
We first covered MARA stock back in 2017, which you can read about here and before the reverse split. Marathon was running due to a short squeeze and the stock has a history of battling the shorts. Now it’s no different as the shorts are short 1.4 million shares or just over 8% of the float. We believe these shorts are going to get squeezed, especially as the Bitcoin Bull Run 2.0 looks to be in play. Taking a closer look, there’s a lot to like right now with MARA stock.
About MARA Stock
First up, here’s a little background info for those that aren’t familiar with MARA stock. Marathon Patent Group, Inc. operates as a digital asset technology company that mines cryptocurrencies. It owns cryptocurrency mining machines and a data center to mine digital assets in Quebec, Canada. The company was formerly known as American Strategic Minerals Corporation and changed its name to Marathon Patent Group, Inc. in February 2013. Marathon Patent Group, Inc. was founded in 2010 and is headquartered in Las Vegas, Nevada.
The Bitcoin implosion from $20k to under $4k put many Bitcoin miners out of business. The cost of electricity made Bitcoin mining at those levels unprofitable. The good news for MARA holders is that Marathon is one of the few pure-play Bitcoin miners to bet on. Furthermore, it’s facilities are located in Quebec, which removes any geopolitical risk.
Last week, MARA stock announced the purchase of 700 next-generation M31S+ ASIC Miners from MicroBT. Meanwhile, Bitmain told Marathon that 660 of the 1,660 Bitmain S-19 Pro Minder it previously purchased will be delivered in mid-August. The MicroBT miners are also expected to arrive in mid-August.
The company currently has 700 M31S+ miners operational producing 56 PH/s. CEO Merrick Okamoto said:
“Upon delivery and installation of the 1,360 miners due to arrive in August, the company will have 2,060 Miners operational, producing 184 PH/s. As a result, the Company’s aggregate hashing power capacity would increase by 320% from the current level of 56 PH/s. Based on current Bitcoin prices, the company would expect to become cash-flow positive.”
The 1,000 remaining S-19 Pro Miners due to arrive in the 4th quarter will produce an additional 110 PH/s, which when installed will give the Company an aggregate Hashpower of 294 PH/s.
Reasons To Be Bullish On MARA Stock
- Its current market cap is only $82 million.
- Marathon just raised almost $7 million last month. The company is well-funded and does not need to raise any more capital.
- Bitcoin is heading higher. That will drive MARA stock higher as it’s a pure-play on Bitcoin.
- Robinhooders cannot buy OTC stocks like GBTC and BTCS on the Robinhood platform.
- New buying will force the shorts to cover and further drive the price higher.
- If you look at where MARA stock traded at in the last Bitcoin bull run ($40), you can see there’s a lot more upside to be had.
MARA stock is gearing up for a big move, just like Bitcoin. With governments worldwide printing money, there are only 2 options as a hedge – gold and Bitcoin. For those that don’t want to buy Bitcoin directly, the best bet is MARA stock. New highs are coming. Buckle up and enjoy the ride.
As always, good luck to all (except the shorts)!
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Disclosure: We have no position in NASDAQ:MARA or any of the securities mentioned. We wrote this article ourselves and it expresses our own opinions. We are not receiving compensation for it. We have no business relationship with any company whose stock is mentioned in this article. Insider Financial is not an investment advisor and does not provide investment advice. Always do your own research and make your own investment decisions. This article is not a solicitation or recommendation to buy, sell, or hold securities. This article is meant for informational and educational purposes only and does not provide investment advice.