As Marathon Digital joins S&P SmallCap 600, shares surge 18%

exchange68September 10, 2024

0 0 2 minutes read

Quick Take

Marathon Digital Holdings Inc. (MARA), the largest Bitcoin mining company in terms of market cap, is set to join the S&P SmallCap 600 index, effective before the opening of trading on May 8. The news, announced on May 3, sent Marathon’s share price soaring 18% on May 6. Marathon will replace Aaon Inc. in the widely followed small-cap stock index.

Bitcoin Miner Market Capitalisation: (Source: Farside) — Table showing the market capitalization of publicly-traded Bitcoin mining companies (Source: Farside)

The S&P SmallCap 600 is an index tracking the small-cap segment of the US equity market. According to Farside data, Marathon is currently the largest publicly traded Bitcoin miner, with a market capitalization of around $5.6 billion.

The company reported holding 17,631 unrestricted Bitcoins as of April 30. While Marathon’s stock is down 10% year-to-date, its inclusion in the S&P SmallCap 600 index could provide a significant boost. MARA has significantly underperformed Bitcoin this year, as BTC saw a 40% YTD increase while MARA posted losses.

MARA vs BTCUSD YTD: (Source: TradingView) — Graph showing the YTD performance of MARA and BTCUSD (Source: TradingView)

Investors will closely watch Marathon’s performance as the first publicly traded Bitcoin mining company to be added to an index fund traded on a US stock exchange.

Analyst

James Van Straten

Lead Analyst at CryptoSlate

James fervently appreciates data, technology, and trend-spotting. As a tech and liberty maximalist, he hails Bitcoin as the 21st century’s paramount invention.

Disclaimer: Our writers’ opinions are solely their own and do not reflect the opinion of CryptoSlate. None of the information you read on CryptoSlate should be taken as investment advice, nor does CryptoSlate endorse any project that may be mentioned or linked to in this article. Buying and trading cryptocurrencies should be considered a high-risk activity. Please do your own due diligence before taking any action related to content within this article. Finally, CryptoSlate takes no responsibility should you lose money trading cryptocurrencies.