- Marathon Digital’s stock (MARA) rallied and reversed its April losses after its latest listing on the S&P SmallCap 600 index.
- The company’s shares surged 17.98% on Monday, marking an extended recovery and effectively reversing over 90% of its losses in April.
- Marathon Digital is set to release its quarterly earnings report on 9 May, which could further impact its market performance.
Marathon Digital’s stock (MARA) sees a significant rally following its listing on the S&P SmallCap 600 index, reversing its April losses and marking a positive start to May.
Marathon Digital’s Stock Surges Following S&P SmallCap 600 Listing
Bitcoin’s largest miner by market cap, Marathon Digital, saw its shares (MARA) hike by 17.98% during Monday’s trading session. By hiking as it did, MARA marked an extended recovery, pushing it closer to $20 as it effectively reversed over 90% of its losses in April. The massive single-day jump followed the S&P Global listing last Friday. Marathon Digital was included in the S&P 600, an index that tracks the smallest traded public U.S companies based on market cap.
Impact of the S&P 600 Listing
The development happened last Friday after market hours, but was only priced on Monday, as underlined by the aforementioned jump. The S&P 600, also known as the S&P SmallCap 600, requires a market cap of $1 billion—$6.7 billion for listing. Additionally, firms have to record positive profits for the last four quarters. After Monday’s rally, MARA had a market cap of $5.64 billion. With a Q1 earnings report scheduled for 9 May, staying on the index will depend on future quarterly earnings.
Future Outlook for Marathon Digital
Despite the Monday jump and overall recovery in May, however, MARA’s YTD (year-to-date) performance was down 9.86% at press time. In fact, the YTD performance across most miners’ stocks, like Riot Platforms and Hut 8, have fallen by double-digits. However, the enlisting of MARA on the S&P 600 marks another relevant chapter for Bitcoin-linked publicly traded companies. It will increase the visibility of Marathon Digital and the potential to attract more investment in the mining ecosystem. It will be interesting to see how BTC reacts to Marathon Digital’s quarterly earnings report on 9 May.
Conclusion
Marathon Digital’s listing on the S&P SmallCap 600 index has resulted in a significant surge in its stock, reversing its April losses. The company’s future performance will be influenced by its upcoming quarterly earnings report and its ability to maintain its position on the index. This development marks a significant moment for Bitcoin-linked publicly traded companies and could potentially attract more investment in the mining ecosystem.
