The crypto mining industry consolidated a bit on Tuesday, and investors not only made bids in response. Marathon Digital Holdings (NASDAQ:MARA) — Consolidated Companies — But also other notable stocks in the business.
Marathon’s own stock rose about 11%, but smaller companies crypto mining (NASDAQ:CIFR) There was an increase of over 14%. terra wolf (NASDAQ:Wolf) and SOS limited (NYSE:SOS) They were the winners again on this day, winning by 9% and 10% respectively. As an overview, S&P500 The index rose only 0.6%.
Marathon signs contract worth approximately $180 million
Before the market even opened, Marathon shook up the crypto miner world. Bitcoin (Cryptocurrency: BTC) mining site. It bought the pair from a subsidiary of financial firm Generate Capital for $178.6 million. This purchase must be paid in full in cash.
The two sites, one in Texas and one in Nebraska, have a combined capacity of 390 megawatts. That means the contract value is $458,000 per megawatt.
This is a historic acquisition for Marathon, as the pair will be Marathon’s first wholly owned sites. After the transaction closes, the company’s capacity will be 910 MW. 45% of this consists of wholly owned facilities, with the remainder held by third-party business partners.
In a press release about the acquisition, Marathon said the new site is expected to reduce the cost per coin of Bitcoin mining operations by 30%.
CEO Fred Thiel also said the deal was transformational and would transform the company into a “more sophisticated and mature organization with a diverse portfolio of Bitcoin mining technology and assets.” I told him.
Investors clearly bought into that argument, judging by how eagerly they jumped into Marathon stock after the announcement. The deal also led to speculation about other acquisitions (and generally solid demand for Bitcoin mining facilities), which in turn drove up prices for similar miners like TerraWulf and SOS.
buy bananas for bitcoin
Of course, sentiment towards Bitcoin miners is determined by how the market feels about Bitcoin in general. Although the prices of major cryptocurrencies have fallen over the past few days, they are still very high by historical standards. In fact, the only time it has exceeded its current level of just over $42,000 was during two bull markets earlier this decade. And if Bitcoin is a hot item, there is no doubt that miners who move to integrate will be rewarded accordingly.
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Eric Volkman has a position in Bitcoin. The Motley Fool has a position in and recommends Bitcoin. The Motley Fool has a disclosure policy.
Why Marathon Digital and other crypto mining stocks are soaring today was originally published by The Motley Fool