The actions of MARA Holdings Inc. (NASDAQ:MARA) surged following the news of the record price of Bitcoin (CRYPTO:BTC). Here is what you need to know.
What you need to know: Bitcoin has in fact gained around 125% since the start of the year. Several cryptocurrency-related stocks rose Wednesday after Bitcoin briefly hit record highs. Over a 24-hour period, Bitcoin rose 1.1%, trading around $94,100 at last check.
The fact that the new administration of the newly elected president Joe Biden Expressing optimism also contributed to this trend. Biden actually declared that he would put in place a strategic reserve of Bitcoins upon his return to the White House.
At Benzinga’s Fintech Trading Day on Tuesday, The Transform Group CEO, Michael Terpinpredicted that Bitcoin could reach $193,000 by the end of 2025, with potential peaks of $200,000 to $300,000 at the end of its current cycle if regulatory conditions improve.
Trading activity at Marathon, one of the largest Bitcoin miners, is closely linked to the performance of Bitcoin. Rising Bitcoin prices increase the value of MARA’s Bitcoin holdings. Interestingly, MARA Holdings is outperforming its peers in the Bitcoin mining industry on Wednesday. This outperformance could be explained by the company’s strategy of raising capital to accumulate Bitcoins, like MicroStrategy Inc (NASDAQ:MSTR), which continues to see relative outperformance.
Previously, at the start of the year, MARA Holdings adopted a Bitcoin treasury strategy “Complete HODL”holding on to all the Bitcoin it had mined, while periodically making strategic purchases on the open market. The company held a total of 26 747 Bitcoins by September 30.
Well, on Monday, MARA Holdings announced an increased offering of $850 million from subordinated cash notes convertibles, maturing 2030. The company said the proceeds from this transaction would be used to repurchase existing debt and acquire more Bitcoins.
MARA Price Movement : At the time of writing, shares of MARA Holdings were up 16.3% to $23.12, according to Benzinga Pro.
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1. Can you please introduce yourselves and provide a brief description of your expertise in the cryptocurrency industry?
2. How do you think the recent surge in Bitcoin’s price is impacting the cryptocurrency market as a whole, and what are some of the key factors that have contributed to this growth?
3. What are your thoughts on the potential for a strategic Bitcoin reserve under the Biden administration, and how do you think this could impact the adoption and acceptance of cryptocurrencies?
4. Why do you think MARA Holdings has been outperforming its peers in the Bitcoin mining industry recently, and what role do you think its “Complete HODL” strategy has played in this success?
5. What are the potential risks associated with holding a large amount of Bitcoin as a treasury reserve, and how are companies like MARA managing these risks?
6. What role do you see regulation playing in the future of cryptocurrencies like Bitcoin, and how do you think it will impact the industry’s growth and stability?
7. Can you discuss the significance of MARA’s increased offering of $850 million in subordinated cash notes convertibles, and how do you think this will affect the company’s ability to acquire more Bitcoins and manage its debt?
8. Looking ahead, what trends do you see emerging in the cryptocurrency market, and how do you predict the price of Bitcoin will perform over the next year?
