Marathon Digital Holdings announced plans to sell shares to raise funds aimed at increasing its Bitcoin reserves.
Marathon Digital's Share Sale for Bitcoin Investment
Marathon Digital Holdings filed Form 8-K with the U.S. SEC stating its collaboration with an investment firm to sell shares and raise money. The primary goal is to increase their Bitcoin holdings, though funds will also be used for general corporate purposes. The shares are expected to be sold on Nasdaq or through negotiated transactions, which could help Marathon Digital regain its momentum.
Current Dynamics of Marathon Digital Stocks
According to TradingView, MARA stock is currently traded at $12.47, with a weekly gain of 1.71% and a monthly rise of 1.75%. However, over longer periods, the stock has been bearish with a 35.72% drop over the last quarter, 31% over the past six months, and a 28.92% decline since the beginning of the year. Recent gains are attributed to the Q4 2024 earnings report, exceeding estimated EPS and revenue. For Q1 2025, Marathon Digital's estimated revenue is $223.77 million with a price target of $22.54.
Rise of Institutional Investment in Bitcoin
In recent years, there has been a significant increase in participation by publicly listed companies and institutional investors in Bitcoin. Notably, MicroStrategy holds 506,317 BTC, followed by Marathon Digital with 46,374 BTC, and Riot Platform Inc. with 18,692 BTC. Japanese company Metaplanet continues to boost its BTC reserves, positively impacting its stock value. Bitcoin's popularity and dominance continue to surge, currently dominating at 62.38%, a 7.23% increase year-to-date.
Marathon Digital's plans to raise capital through share sales for increasing its Bitcoin reserves is part of a broader trend of institutional investment in cryptocurrencies, highlighting Bitcoin's growing importance in the global economy.
