MARA Stock: Marathon Digital Slumps 40% From Highs, What Next?

The growth in the cryptocurrency sector has resulted in considerable interest among investors in companies that are involved in that sector. One of the companies that perhaps deserve some attention among investors at this point is that of Marathon Digital Holdings (NASDAQ:MARA).

In this regard, it should be noted that the company is highly dependent on the price of Bitcoin for its growth. It offers investors an option to stay invested in Bitcoin without actually owning the cryptocurrency.

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The company is involved in Bitcoin mining but many experts believe that if Marathon starts mining other cryptocurrencies then it might have better prospects in the future. While that may be the case, it cannot be denied that at this point the stock price is intimately linked with Bitcoin price. Data also suggests that the company spends as much as $2 to eke out revenue of $1 from Bitcoin. Hence, investors might consider sitting on the sidelines with regards to this stock at this point.

Jack Dawkins

Finance and Tech Contributor