Watching MARA stock has been nothing short of a rollercoaster ride after MARA shares fell from all-time highs of $75 all the way down to $4 in December 2022.
Many of you follow me on social media where I advised investors to buy the massive dip in MARA shares. Once again, MARA shares soared to almost $20 and have crashed under $10 for the 2nd time.
That’s the nature of Bitcoin but things are about to get crazy once the SEC approves dozens of Bitcoin spot ETF applications along with the 4th Bitcoin halving event in April 2024.
Buckle your seatbelts for a wild ride if you’re a MARA shareholder because Bitcoin could hit $100,000 for the first time ever and create a chain event of short squeezes for crypto stocks.
7 Reasons Why Marathon Digital Holdings Stock Could Soar to $80+
1. Marathon Digital Holdings is One of the Most Shorted NASDAQ Stocks
Marathon Digital has a 30% short interest and is one of the most shorted stocks on the NASDAQ.
Short sellers are betting against Bitcoin miners during the crypto bear market but will be forced to eat their losses during the 2024 crypto bull run.
2. Bitcoin Spot ETFs Will Allow Retail Investors to Buy Bitcoin Safely
Several institutional firms are begging SEC Chairman Gary Ginsler to approve their Bitcoin spot ETF applications. Blackrock, ArkInvest, Fidelity, and Grayscale are a few of the big names that want to offer Bitcoin to their clients.
When approved, these Bitcoin spot ETFs will add billions of dollars to Bitcoin’s market cap and send BTC mining stocks soaring to the moon.
3. Marathon Digital Holdings Over 13,000 BTC on Its Balance Sheet
Marathon Digital has the largest BTC holdings out of all publicly traded Bitcoin mining companies with 13,726 BTC on its balance sheet.
The company earned a record 4.2% of all miner rewards in September 2023 and aims for a goal of 23 exahashes before the next BTC halving.
That’s not including future BTC to be mined and earned from block transactions, ordinals fees, and network fees.
4. Bitcoin Ordinals and Transaction Fees Will Reward More BTC Than Mining Blocks
As I mentioned above, Marathon Digital plans to earn most of its future BTC through ordinals and network fees. Even though the BTC block reward will get cut in half, the company can earn more future Bitcoin as the entire Bitcoin network grows in size.
As inflation wreaks havoc on consumers worldwide, I’m guessing people will wake up and realize that holding a deflationary currency like Bitcoin is a smart long term move.
5. Retail Investors Will FOMO into Bitcoin Miners After The 2024 Halving Event
These same investors will buy up Bitcoin ETFs and Bitcoin mining stocks to profit from a surge in Bitcoin prices.
MARA shares hit nearly $80 during the 2021 stock market boom due to low interest rates and free stimulus money.
What will happen when the BTC block reward gets cut from 6.25 to 3.125 and Bitcoin soars due to a supply shock instead of government stimulus?
Retail investors will FOMO in Marathon Digital (MARA), Riot Blockchain (RIOT), and Cleanspark (CLSK) in the next bull run.
6. Short Sellers Must Buy Back MARA Stock to Avoid Massive Losses
This is when the true magic happens as short sellers buy back MARA stock to limit their losses.
MARA and other crypto stocks can move in a hurry. It’s not unusual for MARA shares to soar 15%+ in a single day.
The 2023 Summer short squeeze was just the beginning of a much bigger runup due in Q2 2024.
7. Bagholders Will Dump around $80 but MARA Shares Will Peak in October 2025
There are a ton of MARA bag holders who got caught in November 2021. I’m predicting a ton of selling pressure around $80 but won’t consider selling my MARA shares until October 2025.
October 2025 will signal the end of the first period of the 4th halving cycle. Bitcoin usually peaks in price around 18 months (6 quarters) after the halving event.
My Gameplan for MARA Stock
I’m loading up MARA shares under $10 even tough MARA stock trades at a premium to its underlying Bitcoin holdings worth ~$374.6 million.
MARA’s P/S ratio is around 6, which is pretty low in comparison to previous highs. Now is a good time to start accumulating while Bitcoin’s price is trending sideways.
The MARA squeeze will start in Q2 2024 once the next bull market begins. Take profits in Q3 2025 if you want to lock in your gains.
The crash could be as epic as the fall so be prepared for some downside risk. Use stop loss orders or buy puts to protect your position from significant losses after the short squeeze.