- Marathon Digital has become the biggest Bitcoin miner in the world.
- The company mined 1,176 Bitcoins in July, 20% from the previous month.
Marathon Digital stock price has held quite well during the ongoing crypto winter period. The shares were trading at $16.93 on Thursday, about 15% below the highest point in July. The Nasdaq 100 index has dropped by 3.74% from its July high while Bitcoin has fallen by 8% in the same period.
Marathon gains market share
MARA stock price has remained in a tight range as investors assess the impact of the ongoing crypto winter that has seen Bitcoin sit in a consolidation for more than a month. BTC is hovering at the support level of $29,000 after a bullish breakout failed to happen in July.
It seems like MARA investors believe that Bitcoin price will bounce back later this year. This explains why the shares have not dropped further in the past few weeks. Historically, MARA shares tend to move in the same direction as Bitcoin.
MARA shares moved sideways after the company solidified its role as the biggest Bitcoin miner in the world. In a statement, the company said that it produced 1,176 Bitcoins in August, a 20% increase from the previous month and 1,527% increase from the same period in 2022.
Marathon Digital’s mining activity has increased because of the company’s investments in mining machines. This, increase led to a 6% MoM increase of hashrate to 18.8 exahashes. In a statement, the company’s CEO said:
“The majority of the sequential increase is due to the completion of the build-out of the facility in Ellendale, North Dakota. With all six buildings now fully operational, Ellendale adds a total of 7.6 exahashes to our energized hash rate.”
Therefore, because of its scale, investors believe that the company will continue doing well as it continues growing its market share. At the same time, its balance sheet has made a lot of progress. It has over $129.4 million in cash and short-term investments while the number of BTC holdings has jumped by 28% to $12,964.
MARA stock price forecast
The daily chart shows that the Marathon Digital stock price has drifted downwards in the past few days. Along the way, the shares have retested the important support level at $15.60, the highest level in October 2022.
The shares have remained above the 25-day and 50-day moving averages (MA). It has formed what looks like a bullish flag pattern. Therefore, the shares will likely have a bullish breakout in the coming weeks. If this happens, the initial point to watch will be the psychological level at $20.
