MARAs Stock Rallies as Bitcoin Barely Moves

MARA Holdings stock surged 4.81% to close at $11.98 on Friday, while Bitcoin remained largely unchanged.

The move is attributed to a high-beta rebound, rather than any newly disclosed change in MARA's business.

As the company holds a large amount of Bitcoin, its value can be significantly impacted by even small changes in the cryptocurrency's price. With a $2.75 billion gross balance at Friday's price, every $10,000 move in Bitcoin changes the gross value of 35,577 coins by about $356 million.

MARA's second-quarter revenue fell 27% to $174.9 million, and it recorded a $611.3 million net loss, including a $343 million Bitcoin fair-value loss. The company has arranged $600 million of incremental Bitcoin-backed borrowing at a weighted average 7.56% cost.

The rally is viewed as a trade on leverage rather than proof of a higher earnings base. Concrete evidence that could turn it into a fundamental re-rating includes completion of Long Ridge, the at-least-one infrastructure lease management said it aimed to sign before year-end, or updated Bitcoin holdings and unit costs.