Latest news with #MarathonDigital
Yahoo
5 days ago
- Business
- Yahoo
Bitcoin Dips Below $117K After Crypto Bills Get Shot Down in Congress
Bitcoin (BTC-USD) hit the brakes Tuesday, dropping below $117,000 after crypto-focused bills ran into political resistance in the U.S. House of Representatives. Warning! GuruFocus has detected 7 Warning Sign with MU. The price tumbled 2.8% to $116,516 retreating from a daily high of $120,481 as 13 Republicans crossed the aisle to block a procedural vote. That setback deflated expectations that Congress might finally deliver regulatory clarity for the industry. It's a sharp turn from recent weeks, where excitement around bitcoin ETFs and hopes for a legislative breakthrough had driven the token to all-time highs. Crypto stocks didn't escape the fallout. Riot Platforms (RIOT, Financials) fell 3.3%, Marathon Digital (MARA, Financials) slid 2.3%, and Coinbase (COIN, Financials) dropped 1.5% all showing weakness even after the closing bell. The vote wasn't on final legislation, but it still signaled a rocky path ahead. And with crypto's fortunes now tied closely to politics, traders are watching D.C. as closely as they are their charts. This article first appeared on GuruFocus. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Yahoo
6 days ago
- Business
- Yahoo
Bitcoin Dips Below $117K After Crypto Bills Get Shot Down in Congress
Bitcoin (BTC-USD) hit the brakes Tuesday, dropping below $117,000 after crypto-focused bills ran into political resistance in the U.S. House of Representatives. Warning! GuruFocus has detected 7 Warning Sign with MU. The price tumbled 2.8% to $116,516 retreating from a daily high of $120,481 as 13 Republicans crossed the aisle to block a procedural vote. That setback deflated expectations that Congress might finally deliver regulatory clarity for the industry. It's a sharp turn from recent weeks, where excitement around bitcoin ETFs and hopes for a legislative breakthrough had driven the token to all-time highs. Crypto stocks didn't escape the fallout. Riot Platforms (RIOT, Financials) fell 3.3%, Marathon Digital (MARA, Financials) slid 2.3%, and Coinbase (COIN, Financials) dropped 1.5% all showing weakness even after the closing bell. The vote wasn't on final legislation, but it still signaled a rocky path ahead. And with crypto's fortunes now tied closely to politics, traders are watching D.C. as closely as they are their charts. This article first appeared on GuruFocus.
Business Insider
15-07-2025
- Business
- Business Insider
Marathon Digital Stock (MARA) Soars 10% as Bitcoin Hits a New ATH & Crypto Week Starts
Marathon Digital (MARA) stock rallied on Monday after Bitcoin (BTC) broke past the $120,000 per token barrier. BTC currently trades at $121,452 after hitting a new all-time high of $122,547 earlier today. This matters to Marathon Digital as the company operates one of the largest Bitcoin mining operations in North America. Elevate Your Investing Strategy: Take advantage of TipRanks Premium at 50% off! Unlock powerful investing tools, advanced data, and expert analyst insights to help you invest with confidence. Make smarter investment decisions with TipRanks' Smart Investor Picks, delivered to your inbox every week. Another positive for Marathon Digital is Crypto Week. This is a period when the U.S. House of Representatives will start deliberating on new bills that could become laws with major effects on the crypto sector. Among these is the Genius Act, which would set regulations for the creation of stablecoins tied to the U.S. dollar. Finally, Marathon Digital stock has experienced an upward trend recently, which included a 14.27% gain over the past week. This came alongside a collaboration with TAE Power Solutions and plans to increase its Bitcoin mining operations. Considering BTC's recent rally, it makes sense that investors would be receptive to this plan. Marathon Digital Stock Movement Today Marathon Digital stock was up 9.72% on Monday morning, extending a 26.39% year-to-date rally. Even so, traders will note that MARA stock has fallen 22.13% over the past 12 months. Today's price increase came with some 14 million shares traded, compared to a three-month daily average trading volume of 44.67 million units. Is Marathon Digital Stock a Buy, Sell, or Hold? Turning to Wall Street, the analysts' consensus rating for Marathon Digital is Hold, based on three Buy, four Hold, and a single Sell rating over the past three months. With that comes an average MARA stock price target of $19.25, representing a potential 7% downside for the shares. With Crypto Week underway, investors will want to keep a close eye on MARA stock. Any government news could act as a catalyst for the company's shares, especially if it affects Bitcoin.
Forbes
11-07-2025
- Business
- Forbes
A New Way To Value Bitcoin Treasury Companies
Market-to-Fair Book Value Strategy—formerly known as MicroStrategy—is the original Bitcoin treasury company. Michael Saylor famously announced that the company's primary mission was to buy and hold bitcoin. Since then, several other companies have followed suit, including Semler Scientific, Marathon Digital Holdings, MetaPlanet, SmarterWeb, and others. In fact, new entrants continue to appear almost weekly. Some of these companies, like Marathon, have a substantial underlying operating business. Others, like XXI, are pure-play treasury companies. Still others, like Strategy, Semler, and MetaPlanet, operate small businesses that are dwarfed by their Bitcoin holdings. So, what is the best way to value these companies? Traditionally, investors have used mNAV—Market-to-Net Asset Value. Because most of these firms' value is derived from their bitcoin holdings, the standard metric has been mNAV: the ratio of the company's enterprise value to the value of its underlying Bitcoin. When mNAV is less than one, the company trades at a discount to the value of its Bitcoin. When mNAV is greater than one, it trades at a premium. There are several reasons a firm might trade at either a discount or a premium. For example, MicroStrategy traded at a discount during the last Bitcoin bear market, when its mNAV dropped below 0.8. Today, it trades at a premium, fueled by sustained interest from large institutional investors. Often, this premium reflects regulatory or geographic arbitrage. Some investors cannot directly buy or hold Bitcoin. Bitcoin treasury companies offer these investors a proxy. For example, many mutual funds are restricted by their mandates to hold only publicly listed equities—and must hold them in large enough quantities to matter. That creates demand for companies like Strategy. In another case, countries like the United Kingdom prohibit Bitcoin in retirement accounts but allow public equities. These are just two reasons why MSTR might trade at a premium to their net asset value. The conventional definition of mNAV is: where: The justification for using enterprise value—rather than just market cap—is that EV reflects what an acquirer would need to pay to buy the entire company: all its equity and all its debt. But I propose a different Book Value An alternative way to evaluate a Bitcoin treasury company is to consider what would happen in bankruptcy. Since creditors are paid first, only the remaining assets—if any—go to equity holders. In this context, the relevant comparison is not enterprise value to Bitcoin value, but rather the market value of equity to the (fair) book value of the firm. Book value is important because it reflects the net assets of a firm—the difference between its assets and liabilities. For Bitcoin treasury companies, the primary asset is bitcoin, and other assets are typically negligible. Similarly, we focus on debt related to bitcoin acquisitions, ignoring other liabilities for simplicity. Now, U.S. accounting rules (GAAP) define book value based on historical cost, which isn't helpful in this case. What matters more is marking bitcoin to its fair market value. So, I define: Fair book value gives a clearer picture of what shareholders might actually recover—and provides a more intuitive, bankruptcy-aware valuation framework for Bitcoin treasury companies. Here, fair book value refers to book value marked to market. Since the primary asset is Bitcoin—with a liquid market price—we can mark it at fair value. This lets us compute the market to fair book value (MFBV), defined as: This measure is superior because it more closely reflects what would happen in bankruptcy. The value of Bitcoin would be used to pay off existing debt, so what matters is the remaining Bitcoin value after debt repayment. The equity value must then be compared against this post-debt Bitcoin value. Note that debt has similar—but not identical—effects on both mNAV and market to fair BV. As debt increases, both ratios a Decision Rule If we put on our value investor hat, we would buy securities when they are undervalued—specifically, when their market capitalizations are sufficiently low. To operationalize this, imagine setting a threshold such that you buy when mNAV lies below that threshold. Then, through some simple algebra, it can be shown that you would buy when In contrast, suppose you set a threshold for MFBV (market to fair book value) such that you buy when the market cap is sufficiently low. In this case, your threshold would satisfy As you can see, the thresholds vary depending on which metric you use. There's an edge case when , where the decision rule yields the same outcome for both metrics. But for any other thresholds, the outcomes Leaderboard Let's examine how the top Bitcoin treasury companies perform under both metrics, as of late June, 2025: mNAV Chart The newcomer Metaplanet has the highest mNAV in the group. The market is pricing its shares at a steep premium to its Bitcoin holdings. This benefits Metaplanet for now, as it can sell shares at a high premium and use the proceeds to buy large quantities of Bitcoin. Now let's consider how these same companies compare based on market to fair book value: MFBV Chart The chief difference between these tables shows that MARA had a lower mNAV than MSTR, but actually has a higher MFBV. As you can see, the measures are broadly similar—except Metaplanet now shows a negative market to fair book value. This happens because its debt exceeds the value of its bitcoin. If Metaplanet were to go bankrupt, equity holders would receive nothing since the company's assets (i.e., its bitcoin) wouldn't cover the face value of the Bottom Line Personally, I prefer the market to fair book value metric because it offers a clearer view of downside protection. A company with a very low market to fair book value signals that equity holders would likely still recover value even in bankruptcy. If the ratio is less than 1, it means that after Bitcoin is sold to repay debt, there would still be more than a dollar of value left for every dollar of equity held.
Coin Geek
09-07-2025
- Business
- Coin Geek
Tether's open-source software signals new era for mining
Getting your Trinity Audio player ready... Tether, the issuer of stablecoin USDT, plans to open-source its Bitcoin Mining Operating System (MOS) by Q4 2025, a move that could democratize block reward mining. By making its proprietary software freely available, Tether aims to reduce reliance on costly third-party systems, lower entry barriers for new miners, and foster innovation. This initiative comes as the mining industry grapples with post-halving economics, rising energy costs, and a pivot toward sustainability and diversification. Block reward mining, the process of securing the blockchain through computational power, is increasingly dominated by large players like Marathon Digital (NASDAQ: MARA) and Riot Platforms (NASDAQ: RIOT), who leverage advanced ASICs and energy-efficient infrastructure. Tether's MOS, previously used by select partners, optimizes mining operations, enhancing hash rate efficiency and energy management. Open-sourcing MOS could empower smaller miners, who hold a 54.6% market share in 2025, to compete with established firms. This aligns with blockchain's ethos of decentralization, potentially redistributing hash power away from concentrated mining pools. The 2024 Bitcoin halving, which cut block rewards to 3.125 BTC, has squeezed profitability, pushing miners to prioritize efficiency. Advanced hardware like Canaan's (NASDAQ: CAN) A1566 (185 TH/s, 18.5 J/TH) and Bitmain's Antminer S21 have become critical, but software plays an equally vital role. Tether's MOS could enable miners to customize operations, optimizing energy use and integrating with renewable sources like hydropower, which powers 36% of North American mining. This is crucial as major miners have committed to net zero targets by 2030, driven by ESG pressures and institutional investor demands. The industry is also diversifying, with miners like Hive Blockchain (NASDAQ: HIVE) and Core Scientific (NASDAQ: CORZ) repurposing facilities for artificial intelligence (AI) and high-performance computing (HPC). Global data center demand is expected to surge 160% by 2030, driven by AI applications like ChatGPT, which require 10 times the power of a Google search (NASDAQ: GOOGL). Tether's open-source software could facilitate hybrid models, allowing miners to toggle between cryptocurrency and AI workloads, maximizing infrastructure value. For instance, CoreWeave, a former Ethereum miner, now generates significant revenue from AI computing, a path smaller miners could emulate with accessible software. However, open-sourcing MOS carries risks. Proprietary systems benefit from dedicated support and security updates, while open-source platforms rely on community contributions, which may lack consistency. Miners must implement robust cybersecurity to prevent vulnerabilities, especially as hacking attempts on blockchain networks rise. Regulatory challenges also loom, with regions like Europe imposing high energy costs ($142,682 to mine one BTC) and Russia enforcing seasonal bans. Tether's initiative may struggle in such environments unless paired with cost-effective energy strategies. The competitive landscape remains intense, with Bitmain, Canaan, and Nvidia (NASDAQ: NVDA) leading hardware innovation, while public miners like CleanSpark (NASDAQ: CLSK) (45.6 EH/s in May 2025) dominate operations. Tether's move could disrupt this dynamic by enabling smaller players to innovate, potentially integrating MOS with tools like WhatToMine for profitability analysis. The broader market, projected to grow from $4.66 billion in 2024 to $14.09 billion by 2035 at a 10.57% CAGR, underscores the potential impact of accessible software in driving growth. Tether's decision to open-source its MOS by Q4 2025 could mark a turning point for block reward mining, promoting inclusivity and efficiency. However, its success hinges on community adoption, security measures, and navigating a complex regulatory landscape. As mining evolves, Tether's initiative may pave the way for a more decentralized and sustainable future. Watch: Untangling Bitcoin mining at the CoinGeek Weekly Livestream title="YouTube video player" frameborder="0" allow="accelerometer; autoplay; clipboard-write; encrypted-media; gyroscope; picture-in-picture; web-share" referrerpolicy="strict-origin-when-cross-origin" allowfullscreen="">
