RIOT - Marathon Digital: Progress On Scaling And Efficiency But Volatility Should Persist
2024-05-25 00:40:35 ET
Summary
- Marathon's stock has experienced volatility, partly due to the Bitcoin halving event and rotation of investors into ETFs.
- The company is focusing on efficiency gains through measures such as acquiring more data center capacity and using more efficient mining rigs.
- Volatility should persist in the short term.
- Marathon has the financial capacity to finance its expansion plans and enough Bitcoins to cover operational expenses, putting it in a strong position to tackle Bitcoin halving.
Since I covered Marathon ( MARA ) on February 19, it went up from $24.5 to $31 one week later which was in line with my bullish position, but subsequently slid to $15. As charted below, it has partly recovered since the Bitcoin ( BTC-USD ) halving event dating April 19 and is trading around $21, but this upside is not likely to be sustained in the short term given crypto supply coming from miners likely to put prices under pressure....
Marathon Digital: Progress On Scaling And Efficiency, But Volatility Should Persist