Yesterday, Marathon Digital Holdings (MARA) stock became the most traded U.S. stock of the day, with an impressive $327 million in volume. More than 105 million shares of this Bitcoin mining company changed hands in 24 hours, outpacing heavyweights like Tesla, Apple and Amazon.
Driven by Bitcoin, Marathon Digital creates a surprise on Wall Street
As we approach the fateful date for the filing of the first Spot Bitcoin ETF in the United States, set for January 2023, activity around Bitcoin miners is gaining momentum. In addition to Marathon Digital, its competitor Riot Platforms also appeared in the top 10 most traded stocks yesterday, with 40 million shares traded.
This enthusiasm reflects the market’s very high expectations regarding the positive impact of the Spot Bitcoin ETF. Its approval could indeed pave the way for massive inflows of institutional capital into the crypto ecosystem, directly benefiting extraction players like Marathon or Riot.
But it is not the only catalyst. The other major event awaited by the sector is the Bitcoin halving, scheduled for April 2023. This technical adjustment which halves the reward for miners every four years generally causes a surge in the price.
Anticipating this appreciation, miners are therefore increasing their investments. Riot Platforms, for example, has just acquired $291 million worth of additional hardware. For its part, Marathon Digital has announcement having paid 179 million for two mining centers, bringing its extractive capacity to nearly a billion dollars.
Investors are diving back into crypto stocks
Driven by these promising prospects, actions linked to Bitcoin have been riding a very positive dynamic since the start of the year. Marathon Digital and Riot Platforms posted gains of 767% and 452%, respectively. Same observation for exchange platforms like Coinbase, whose price soared by 450% over the same period.
After a dark year marked by the implosion of FTX, this spectacular rebound demonstrates investors’ newfound confidence in the future of the sector. Proof that the tide has turned, more than $6 billion in short positions on crypto-related stocks have been liquidated since the start of the year.
The sudden enthusiasm around Marathon Digital, which yesterday became the most traded stock on Wall Street, perfectly symbolizes this fierce investor appetite for the leaders of a crypto sector rising from its ashes.
Maximize your Tremplin.io experience with our ‘Read to Earn’ program! For every article you read, earn points and access exclusive rewards. Sign up now and start earning benefits.
