Forget Bitcoin ETFs: MARA Stock Is the Alpha Play for Crypto Bulls

Cryptocurrency and blockchain fans around the world – are you in the trade, or are you missing out? One easy way to get on board is with a share position in Marathon Digital (NASDAQ:MARA) stock.

We’re assigning the stock an “A” grade as Marathon Digital is a highly active cryptocurrency miner.

Marathon Digital is in the financial headlines for several reasons nowadays.

InvestorPlace - Stock Market News, Stock Advice & Trading Tips

For one thing, spot Bitcoin (BTC-USD) exchange-traded funds are quite popular and are drawing attention to cryptocurrency-related assets.

Also, the next Bitcoin halving event is expected to happen in April. You can own either Bitcoin itself or a Bitcoin ETF. Consider investing long-term in Marathon Digital for relative outperformance, if you can tolerate the ups and downs.

MARA Stock: Withstand the High Beta if You Want the Alpha

There’s no denying it. MARA stock is high-beta, meaning it makes big moves in both directions. Ask yourself: Can I tolerate volatility on the way to higher prices?

Here’s a statistic to consider. Yahoo! Finance says that Marathon Digital stock has a five-year monthly beta of 5.4.

In other words, the stock moves 5.4 times as fast (again, in both directions) as the S&P 500.

This helps to explain why MARA stock has wobbled between $20 and $30 multiple times since December 2023.

This is how it goes with cryptocurrency-mining stocks. Volatility brings opportunity, but you need to stay informed and keep your share-position size small.

If you catch Marathon Digital stock anywhere near $20, you’re setting yourself up for another possible move back to $30 for a 50% gain. There’s no guarantee that this will occur, of course.

It’s just a matter of learning all you can about Marathon Digital and understanding the high-beta nature of crypto-related asset investing.

Marathon Digital Is a Premier Cryptocurrency Miner

If you’re fully informed about Marathon Digital, then it will be easier to have confidence in your investment. As you learn more about Marathon Digital, you’ll surely discover that it’s a highly active cryptocurrency miner.

Actually, “highly active” might not be the best phrase; “relentless” is more accurate. Bitcoin-mining revenue is on the rise, and if you want to get on board, then consider a premier producer like Marathon Digital.

Believe it or not, Marathon Digital produced 833 Bitcoins just in February 2024. That’s 22% higher than the 683 Bitcoins that Marathon Digital produced in February 2023.

Also, consider Marathon Digital’s Bitcoin-production hash rate, which is a way to measure through-put. In February of last year, the company’s energized hash rate was 9.5 exahashes per second (EH/s).

Fast-forward to February 2024, and we see that Marathon Digital’s energized hash rate increased 202% year over year to 28.7 EH/s. That’s a level of growth that should impress even the most stubborn crypto critics.

MARA Stock: Gear Up for a Multiyear Marathon

Are you patient and volatility-tolerant? And, do you have a multiyear time horizon? These are questions you’ll want to consider while you’re conducting your due diligence on Marathon Digital.

The approval of spot Bitcoin ETFs and the upcoming Bitcoin halving event helped to bring publicity to Marathon Digital. However, there’s more to the story of this company.

As you do your research, you’ll discover that Marathon Digital is among the most ambitious publicly listed cryptocurrency producers. Consequently, we’re giving an “A” grade to MARA stock and we propose that Bitcoin bulls should take a look at Marathon Digital.

On the date of publication, David Moadel did not have (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.

More From InvestorPlace

• The #1 AI Investment Might Be This Company You’ve Never Heard Of

• Musk’s “Project Omega” May Be Set to Mint New Millionaires. Here’s How to Get In.

• It doesn’t matter if you have $500 or $5 million. Do this now.

The post Forget Bitcoin ETFs: MARA Stock Is the Alpha Play for Crypto Bulls appeared first on InvestorPlace.