Marathon Digital Shares Soar 18% Following Inclusion in S&P SmallCap 600 Index
Summary:
Marathon Digital, the world's top Bitcoin miner by market cap, has seen its shares surge 18% after confirmation of its inclusion in the S&P SmallCap 600 index fund. The surge occurred despite the 9.86% decline in Marathon's stocks since the start of the year. Other Bitcoin mining firms, including CleanSpark and TeraWulf, also recorded substantial share price increases. This takes place against the backdrop of decreasing miner revenues due to the Bitcoin halving.
Marathon Digital, the leading Bitcoin (BTC) miner in terms of market capitalization, experienced an 18% surge in its stock after it was announced that it would be added to the S&P SmallCap 600 index fund. Following the close of trading on Friday, May 3, the S&P Dow Jones Indices stated that Marathon would be taking the place of ventilation and heating manufacturing company Aaon in the index starting on May 8. The S&P SmallCap 600 includes 600 US companies with a market cap ranging from $1 billion to $6.7 billion, which have reported profits in the most recent quarter and across the four previous quarters. On Monday, May 6, the shares of Marathon Digital (MARA) saw a nearly 18% climb to $20.67, as per data from Google Finance. From the Bitcoin halving on April 20 - which reduced miner block rewards from 6.25 BTC to 3.125 BTC, worth $198,000 at current prices - the company's stock price has increased by 25.2%. Even though MARA is down by 9.86% since the beginning of the year and it hit a 2024 peak of $31.03 on February 28, it is expected to be among the more heavily weighted stocks in the S&P SmallCap 600, due to its $5.6 million market cap and the index's float-adjusted market cap weighting system. On May 9, Marathon is set to release its first-quarter results, with investment research firm Zacks predicting a 280% year-over-year (YOY) revenue rise to $193.9 million and earnings per share of $0.02 - representing a 166.7% YOY increase. Shares of Marathon's fellow Bitcoin mining companies, such as CleanSpark (CLSK) and TeraWulf (WULF), saw nearly 8% and 10.7% upturns, respectively, on May 6. This comes amidst a decline in miner revenue as a consequence of the Bitcoin halving, although transaction fees initially stayed above 3.125 BTC for the initial few hundred blocks post-halving, thereby effectively compensating for the newly halved block reward. However, transaction fees have since taken a dip and are now fluctuating between 0.2 BTC to 1 BTC at block 842,350, as indicated by data from mempool.space.
Published At
5/7/2024 3:06:53 AM
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