MARA Stock Plummets as Bitcoin Drops Below $77,000

MARA Holdings stock took a hit on Thursday as Bitcoin fell below $77,000. The decline came amidst broader market weakness, with the Nasdaq down 1.14% and the S&P 500 shedding 0.54%. The drop in Bitcoin price to $77,000 also pushed Brent crude past $102 a barrel.

The current technical analysis suggests that MARA stock is poised for a short squeeze setup. Approximately 26.3% of MARA's outstanding shares are currently sold short, with some estimates as high as 42% of the floating stock. This could lead to a wave of forced short covering, potentially pushing the stock price up.

According to the analysis, if MARA reclaim its technical level near $10.88 without a major rejection, it could open the door for a target of $13.50-$14.25. A stronger move, contingent on continued Bitcoin strength, could extend toward $15.85 in the short term.

MARA's second quarter results showed that despite higher output, revenue fell 27% to $174.9 million, with a net loss of $611.3 million. The company's mining economics remain under pressure due to high energy costs and depreciation.