Key Points
- Marathon Digital’s shares (MARA) surged by 17.98% following its listing on the S&P SmallCap 600 index.
- The company’s future on the index depends on its forthcoming quarterly earnings report due on 9 May.
Marathon Digital, the largest miner of Bitcoin (BTC) by market cap, witnessed a significant hike in its shares, MARA, by 17.98% during Monday’s trading.
This surge pushed MARA closer to the $20 mark, effectively reversing over 90% of its losses incurred in April.
Listing on S&P SmallCap 600
The considerable increase in share price can be attributed to Marathon Digital’s recent inclusion in the S&P 600.
This index tracks the smallest publicly traded U.S companies based on market cap.
The announcement was made last Friday after market hours and was reflected in Monday’s trading session.
To be listed on the S&P SmallCap 600, companies need to have a market cap of $1 billion—$6.7 billion and record positive profits for the last four quarters.
Following Monday’s rally, Marathon Digital’s market cap stood at $5.64 billion.
Future on the Index
The company’s position on the index is contingent on its Q1 earnings report, scheduled for release on 9 May.
Despite the surge on Monday and recovery in May, MARA’s year-to-date (YTD) performance was down by 9.86%.
This is consistent with the trend seen across most miners’ stocks, such as Riot Platforms and Hut 8, which have also fallen by double-digits.
Transaction fees have emerged as a crucial revenue stream for Bitcoin miners, in addition to mining rewards.
The inclusion of Marathon Digital in the S&P 600 is a significant development for Bitcoin-linked publicly traded companies.
This move is likely to enhance the visibility of Marathon Digital and attract more investment into the mining ecosystem.
However, Bitcoin closed in the red during Marathon Digital’s Monday rally.
It remains to be seen how Bitcoin will respond to Marathon Digital’s quarterly earnings report on 9 May.
