MARA Stock Rises Following Bitcoin’s Recovery and BTC Yield Report
Investing.com -- MARA (NASDAQ: MARA) shares rose 4% today, rebounding from a significant drop in the previous session. The prior session's decline had been influenced by hawkish comments from the Federal Reserve, negatively impacting risk assets, including Bitcoin. The cryptocurrency's value, which briefly fell to $98,760, has since risen back above $102,000, seemingly positively affecting MARA's stock performance.
Today, MARA reported a BTC Yield of 60.9% for the period between January 1, 2024, and December 18, 2024. This important performance metric reflects the percentage change in the company's Bitcoin assets relative to its Fully Diluted Shares Outstanding. The company's statement indicates a strategic focus on acquiring and holding Bitcoin, which it believes can add value related to Bitcoin assets for shareholders.
The BTC Yield is used by MARA to assess the effectiveness of its Bitcoin acquisition strategy. For the quarter from October 1, 2024, to December 18, 2024, the company's BTC Yield was recorded at 22.5%. This yield metric serves as a measure for investors to understand the company's use of equity to finance its Bitcoin purchases and whether these actions are viewed positively in terms of shareholder value.
MARA's total Bitcoin assets have increased from 15,174 at the end of 2023 to 44,394 as of December 18, 2024. During the same period, the company’s Fully Diluted Shares Outstanding rose from 254,888 to 463,400. This calculation accounts for the potential conversion of all outstanding convertible bonds, the exercise of all existing warrants, and the payment of all current restricted stock units as well as performance-based restricted stock units.
The company’s emphasis on its Bitcoin strategy and the positive BTC Yield report seems to have resonated well with investors, leading to today’s increase in stock price. Given the recent fluctuations in cryptocurrency markets, MARA's ability to manage and leverage Bitcoin's volatility continues to be a focal point for shareholders and potential investors.