BUT the digital gold rush swept the markets, making the launch of the first fully compatible Bitcoin mining pool in the US a catalyst for Marathon Digital Holdings’ [MARA] growth in the value of shares. The stock jumped 15.8% to $ 44.14 on March 30 following the announcement.
Marathon Digital’s share price rose 59.3% in March alone, increasing first-quarter growth to 360% and close to 376.4% in the year to April 6.
Shares in the digital asset technology company continued to rally this month, hitting a daily high of $ 57.17 on April 5 and then closing at $ 56.56, up another 28.1%. The stock has pulled back since then, dropping 8.26% to $ 52.45 by the close on April 6.
According to ETF.com, about 2.2 million shares of Marathon Digital are held by nine ETFs in the United States. ETF for transformational data exchange Amplify [BLOK], whose shares stood at 5.24% on April 7, rose 59.6% in the first quarter of 2021 to March 31.
Diving for treasures
The launch of the Marathon Digital mining pool comes as institutional interest in bitcoin grows. Seeking to dampen corporate mistrust, Merrick Okamoto, the company’s CEO, said his “pooling initiatives” are based on decentralization, transparency, compliance with US laws and regulations, and independent verifiability in accordance with US auditing standards. ”
“[Marathon’s] Pool initiatives are based on decentralization, transparency, legal compliance with US rules and regulations, and independent verifiability in accordance with US auditing standards. ”- Merrick Okamoto, CEO, Marathon
As the first mining pool in North America to fully comply with US regulations, it excludes transactions from the US Treasury’s Highlighted and Blocked List.
The mining pool will use exclusively licensed technology from DMG Blockchain Solutions. [DMGI.V] to filter transactions and ensure compliance with anti-money laundering regulations and FDA standards.
Just a day after the announcement, the two companies announced that they had signed a definitive licensing agreement to provide technology solutions for Marathon Digital and digital currency miners in North America – the first co-mining pool in the United States, which launched in January.
Marathon Digital said it would begin channeling 100% of its hash rate (a measure of processing power per second) to a new mining pool on May 1 and said it would begin accepting other US bitcoin mining companies from June 1. By the first quarter of 2022, the company expects all 103,120 of its miners to be deployed.
The company’s mining team produced 196 new bitcoins in the first quarter of 2021, increasing their holdings to around 5,134.20. At the time of publication of the report, the price of Bitcoin was $ 58,800, which is $ 301.9 million.
Bullish sentiment for bitcoin
According to morning StarCryptocurrencies were the most efficient asset class in the European ETF market in January and February. Its high yield has made it popular with investors and companies in the US are eager to get involved.
China leads the world in mining hashing speed, with mining pools in the region generating about 65% of the global volume, according to Bitcoin Journal…
“The desire for mining companies to go public is as great as ever as the Riot Blockchain mining companies are listed on the stock exchange. [RIOT], Marathon Patent Group and Hive Blockchain [HIVE.V] all passed the $ 1 billion valuation, ”said Ryan Porter, head of business development at BitOoda.
“The drive of mining companies to go public has never been greater.” – Ryan Porter, BitOoda.
Marathon Digital Mining Pool Joins Companies Like Titan Mining [TI.TO]which launched the first enterprise-grade Bitcoin mining pool in North America last December.
Okamoto believes that moving additional mining capacity to the US could mitigate the transparency risks that threaten the entire industry. In a statement, he suggested that the pool could potentially become the seventh largest in the world, “making North America a hub for digital asset mining.”
When asked in Benzing In an interview about the company’s future, Okamoto said he had no plans to sell bitcoins.
Marathon Digital shares received a moderate buy rating from one analyst at TipRanks, with an average target price of $ 50.00, 1% above its share price at its close on April 6.
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