- Marathon Digital’s MARA rose 17.98% on Monday after joining the S&P SmallCap 600 index
- The company will publish its quarterly results on May 9
Bitcoins [BTC] Marathon Digital, the largest miner by market capitalization, saw its shares (MARA) rise 17.98% during Monday’s trading session. By rising in this way, MARA marked a sustained recovery, pushing its price closer to $20 while actually recouping more than 90% of its April losses.
Bitcoin Miner Joins S&P 600
The huge one-day jump followed the S&P Global mention last Friday. Marathon Digital was included in the S&P 600, an index that tracks the smallest publicly traded US companies by market capitalization.
The development took place after market hours last Friday, but was not priced until Monday, as highlighted by the aforementioned jump. The S&P 600, also known as the S&P SmallCap 600, requires a market capitalization of $1 billion – $6.7 billion for listing. In addition, companies must post positive profits over the past four quarters.
After Monday’s rally, MARA had a market cap of $5.64 billion. With a first-quarter earnings report scheduled for May 9, continued tracking of the index will depend on future quarterly earnings.
Source: MARA shares
Despite the jump on Monday and the general recovery in May, MARA’s year-to-date (year-to-date) performance was down 9.86% at the time of writing. In fact, the YTD performance of most mining stocks, such as Riot Platforms and Hut 8, is down double digits.
Apart from mining rewards, which fell by half after the halving, transaction costs have become an important revenue stream for Bitcoin miners.
However, MARA’s entry into the S&P 600 marks a new relevant chapter for Bitcoin-linked publicly traded companies. It will increase Marathon Digital’s visibility and potential to attract more investment into the mining ecosystem.
However, BTC closed in the red during MARA’s Monday rally. So it will be interesting to see how BTC reacts to Marathon Digital’s quarterly report on May 9.