The stock value of Bitcoin miner Marathon Digital [MARA] has experienced an unprecedented surge, with an astonishing 105 million shares traded in the past 24 hours. According to data sourced from Yahoo Finance, MARA’s trading volume has now surpassed that of other renowned blue-chip stocks such as Tesla, Apple, Amazon, and even its direct competitor, Riot Platforms, securing the top spot among U.S. mid- and large-cap stocks. In contrast, Riot Platforms ranks as the sixth most-traded stock on the chart, with approximately 42 million shares traded over the last day.
This surge in trading activity within the Bitcoin mining stocks sector coincides with a renewed push from mining firms to expand their operations. This expansion is in anticipation of the expected approval of a spot Bitcoin exchange-traded fund [ETF] in early January, coupled with the upcoming Bitcoin halving in April.
On December 19, Marathon Digital entered into a purchase agreement to acquire two operational Bitcoin mining sites, boasting a total capacity of 390 megawatts, from subsidiaries of Generate Capital, PBC. The acquisition, valued at $178.6 million, or $458,000 per megawatt, is set to be paid in cash from Marathon’s balance sheet. Following this acquisition, Marathon will gain control of approximately 390 megawatts of operational capacity.
Notably, 21% [82 megawatts] of this capacity is currently vacant and available for immediate expansion, while 63% [244 megawatts] is occupied by other Bitcoin mining tenants. The remaining 16% [64 megawatts] is already occupied by Marathon and is poised for operational optimizations through energy hedging and other means.
Salman Khan, Marathon’s chief financial officer, expressed, “We have spent the past year strengthening our balance sheet by increasing our cash position, adding to our bitcoin holdings, and reducing our debt to prepare for the halving. By reducing our current operating costs at these sites by 30% and providing us with ample expansion opportunities, this transaction is immediately accretive to our organization.”
Bitcoin Miner Shares Outperform BTC’s YTD Surge
In a parallel move, two weeks earlier, Riot Platforms made a significant stride by acquiring an additional $291 million worth of Bitcoin mining rigs, marking the most substantial increase in the hash rate in the firm’s history.
While BTC itself has witnessed remarkable growth throughout 2023, registering an increase of over 160% since the beginning of the year, the shares of Bitcoin miners have outpaced even the leading cryptocurrency. The surging performance of BTC miners, exemplified by Marathon Digital’s meteoric rise, underscores the dynamic and lucrative nature of the cryptocurrency market in 2023.