A The digital gold rush has gripped the markets and made the launch of the first fully compliant bitcoin mining pool in the US a catalyst for Marathon Digital Holdings. [MARA] Share price rise. The stock rose 15.8% to $ 44.14 on March 30 following the announcement.
The share price of Marathon Digital rose by 59.3% in March alone and extended its growth to 360% in the first quarter and to just under 376.4% for the year up to April 6th.
The digital asset technology company’s stocks rallied further this month, hitting an intraday high of $ 57.17 on April 5 before closing at $ 56.56, up another 28.1%. The stock has since suffered a pullback, falling 8.26% to $ 52.45 by April 6.
Around 2.2 million Marathon Digital stocks are held in nine ETFs in the US, according to ETF.com. The ETF Amplify Transformational Data Sharing [BLOK]The stock, which had a weighting of 5.24% as of April 7, rose 59.6% in the first quarter of 2021 through March 31.
Dive for treasure
Marathon Digital’s mining pool is kicking off as institutional interest in Bitcoin accelerates. To ease corporate distrust, Merrick Okamoto, CEO of the company, said the pools’ initiatives are based on decentralization, transparency, legal compliance with US rules and regulations, and independent auditability under US auditing standards.
“”[Marathon’s] Pools’ initiatives are based on decentralization, transparency, legal compliance with US rules and regulations, and independent auditability under US auditing standards “- Merrick Okamoto, Marathon CEO
As the first mining pool in North America to be fully compliant with US regulations, transactions are banned from the US Treasury Department’s list of specially designated nationals and blocked persons.
The mining pool will only use licensed technology from DMG Blockchain Solutions [DMGI.V] Filter transactions and ensure compliance with anti-money laundering regulations and Office of Foreign Asset Control standards.
Just a day after the announcement, the two companies announced that they had entered into a definitive licensing agreement to provide technology solutions for Marathon Digital and the Digital Currency Miners in North America – the first cooperative mining pool in the US, which started in January.
Marathon Digital has announced that it will feed 100% of its hash rate (a measure of computing power per second) into the new mining pool from May 1st, and other US-based Bitcoin mining companies from June 1st accept. The company expects all 103,120 miners to be deployed by the first quarter of 2022.
The company’s mining team produced 196 new bitcoins in the first quarter of 2021, increasing its inventory to approximately 5,134.20. At the time of the report’s release, Bitcoin was priced at $ 58,800, bringing the value of its holdings to $ 301.9 million.
Bullish at Bitcoin
According to Morningstar, cryptocurrencies were the best-performing asset class in the European ETF market in January and February. The high returns have made it a popular game with investors, and companies in the US are keen to get in on the action.
China is the world leader in mining hash rate, according to Bitcoin Magazine. The mining pools in the region make up an estimated 65% of the world’s total.
“Miners’ appetite for going public has never been greater than that of publicly traded mining companies, Riot Blockchain [RIOT], Marathon Patent Group and Hive Blockchain [HIVE.V] all passed a $ 1 billion valuation, ”Ryan Porter, director of business development at BitOoda, told the publication.
“Miners’ appetite for going public has never been so great” – Ryan Porter, BitOoda
Marathon Digital’s mining pool joins colleagues like Titan Mining [TI.TO], which launched the first corporate bitcoin mining pool in North America last December.
Okamoto believes that moving more mining power to the US could reduce the transparency-related risks that threaten the entire industry. In a statement, he suggested the pool had the potential to become the seventh largest in the world and “put North America on the map as a hub for digital asset mining”.
When asked about the company’s future in a Benzinga interview, Okamoto said he had no plans to sell Bitcoin.
Marathon Digital shares had a moderate buy rating from an analyst on TipRanks with an average price target of $ 50.00, up 1% from the April 6 closing price.
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