Marathon Digital, a prominent Bitcoin miner, has recently taken center stage in the world of trading, becoming the most-traded stock of the day with a staggering $327 million in trading volume.
This remarkable feat has propelled the company ahead of industry giants like Tesla, Apple, and Amazon. As Bitcoin-related stocks gain momentum, Marathon Digital’s surge in trading activity reflects growing anticipation surrounding the approval of a spot Bitcoin exchange-traded fund (ETF).
Bitcoin miner overtakes blue-chip stocks in trading volume
In an unexpected turn of events, Marathon Digital, a Bitcoin mining company, has outshone renowned tech giants by becoming the most-traded stock of the day. Over the last 24 hours, more than 105 million shares of Marathon Digital have been traded, surpassing the trading volumes of companies like Tesla, Apple, and Amazon, according to market data from Yahoo Finance.
This surge in trading activity is indicative of the growing interest in Bitcoin mining stocks, fueled by expectations of an impending approval of a spot Bitcoin exchange-traded fund (ETF) in early January and the upcoming Bitcoin halving event scheduled for April.
It’s worth noting that Marathon Digital recently announced its plans to acquire two mining centers for $179 million, a strategic move set to add 390 megawatts of mining capacity to its existing 584-megawatt output. Similarly, Riot Platforms, another prominent Bitcoin miner, acquired $291 million worth of Bitcoin mining rigs just two weeks prior, marking the most significant increase in the firm’s hash rate.
Bitcoin mining stocks outperforming the crypto market
While Bitcoin has experienced remarkable growth in 2023, with a staggering 163% increase since the beginning of the year, Bitcoin mining stocks have outperformed even the leading cryptocurrencies.
Marathon Digital and Riot Platforms, in particular, have witnessed astonishing year-to-date gains, boasting respective increases of 767% and 452%, as reported by TradingView.
Coinbase, the largest publicly traded crypto exchange, has also enjoyed substantial gains, surging by more than 450% since the start of the year.
These impressive performances signal a significant shift in sentiment towards crypto-related stocks, especially in contrast to the skepticism that prevailed earlier in the year following the collapse of FTX and other high-profile setbacks in the crypto industry.
Interestingly, traders who initially bet against the crypto sector might have underestimated the resilience of the market. The year 2023 has seen more than $6 billion worth of crypto-related short positions being liquidated, highlighting the challenges those seeking to profit from downward price movements in the crypto space face.
This unexpected turn of events has reinforced the notion that the crypto market, while volatile, can yield substantial gains for investors.