• Marathon Digital (MARA) stock sprints to the close on Tuesday.
  • Crypto stocks boosted by the rise in Bitcoin above $50k.
  • MARA stock surges over 10% as retail traders are back.

Marathon Digital Holdings (MARA) stock surged on Tuesday as a double tailwind produced impressive results for the stock. The negativity in recent days, which has spread to most sectors of the market, took a break with a bounce for the major indices. The Nasdaq was the biggest gainer, closing up 1.4%, but all stock indices were higher on Tuesday. Added to this for crypto names was the performance of cryptocurrencies after Bitcoin, the crypto leader, breaking and holding above $50,000. This set crypto stocks on a surge with many closing up 5% or more. MARA stock was possibly the most impressive with its 10.59% gain.

As we can see from the 15-minute chart above, it was a steady gain for the session with MARA closing at the high of the day. This is usually a continuation sign for the following session. 

Marathon Digital (MARA) stock news

Market Cap $3.35 billion
Enterprise Value $2.8 billion
Price/Earnings (P/E)  

Price/Book

9
Price/Sales 628
Gross Margin -77%
Net Margin -78%
EBITDA $-30 billion
52 week low $57.75
52 week high $1.87
Short Interest 15%
Average Wall Street rating and price target

Buy $61.67

Marathon digital Holdings (MARA) announced Bitcoin and mining updates for September 2021 on Monday, October 4. The company produced 1,252.4 new bitcoins for Q3 to end September. This was a 91% increase over the prior quarter. MARA produced 340.6 bitcoins during September, and its total holding of Bitcoins now stands at approximately 7,035. The company also gave some financial details. Cash on hand is $32.9 million, and total liquidity is now at $369.1 million. Marathon Digital Holdings has obtained a $100 million line of credit from Silvergate Bank, which is secured by Bitcoin and cash. MARA also has 8,459 ASIC miners from Bitmain on the way to the company to add to the existing mining fleet of 25,272 miners. 

Marathon (MARA) stock forecast

$37.72 is the recent high from September 23, and we would really like to see this taken out soon. Otherwise, this has just been another failing spike. MARA did find support at the combination of the 200-day moving average, the Volume Weighted Average Price (VWAP) for the year, and the 100-day moving average. All of these converged around $30, making it a very strong support point to buy dips. Crypto stocks will obviously be subject to moves in the underlying prices of cryptocurrencies and, in particular, Bitcoin, but Bitcoin holding above $50,000 is certainly bullish. 

FXStreet View: Neutral, bullish above $38.

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