Why Marathon Digital Holdings Stock Fell Today
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Shares of cryptocurrency miner Marathon Digital Holdings (NASDAQ: MARA) fell on Thursday as the price of Bitcoin (CRYPTO: BTC) continues its decline. Most of the company's assets and its entire business is tied to Bitcoin, so the correlation between the two is expected. Marathon Digital stock finished the session down 11%. Meanwhile, the price of Bitcoin is down roughly 4% over the past 24 hours, according to CoinDesk.
Here's a brief overview of Marathon Digital's business: It provides computing power to the Bitcoin network to process transactions and, in return, is rewarded in Bitcoin of its own. The process is known as Bitcoin mining. It can then sell these Bitcoins to generate revenue. But lately it's funded operations through financing, held its Bitcoin, and even raised funds to buy Bitcoins besides those that it mines. In other words, it's pretty much gone all-in on Bitcoin, which is why the stock price tends to correlate with the price of Bitcoin.
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Source Fool.com
