MARA’s price has almost doubled over the past few weeks, rallying from $8.47 to $15.68! This begs the question though…..what is going on?

For starters, MARA is a bitcoin mining company, meaning that it is dependent on high Bitcoin prices to generate larger amounts of revenue. The problem is that crypto prices have been very shaky over the past two years, in large part due to regulatory concerns.

The SEC under current chairman Gary Gensler has been trying to put the entire crypto industry on a leash, arguing that cryptocurrencies should be considered securities rather than commodities. A label of a security would allow for much more stringent government regulation, which has not sat well with investors.

There has been a spark of hope in recent weeks though, as the asset management firm BlackRock filed for a spot Bitcoin ETF… 

While the SEC has approved several Bitcoin ETFs, they have primarily focused on funds that track cryptocurrency futures or companies indirectly exposed to crypto. These ETFs do not directly reflect the current price of Bitcoin. BlackRock’s proposal aims to provide investors with a fund that directly tracks the spot price of Bitcoin, offering a more straightforward and accessible investment option.

So far a tool of this nature has yet to be approved by the SEC, making this a big opportunity for the crypto space. 

BlackRock is looking to create rules with the new fund that specifically address concerns the SEC has cited when rejecting past applications. This, along with the company’s reputation is leading many folks to believe that Gary Gensler and the SEC may approve a spot ETF this time around. 

MARA is certainly benefiting from this positive sentiment at the moment, and may continue to do so if the SEC ends up approving BlackRock’s ETF proposal. 

Be warned though, the company will be introducing a vote on July 27th for an increase of their authorized shares from 200 million to 500 million. This would give executives strong dilutive capabilities which would be executable at any time, if the vote get’s approved. 

We will be giving a more in-depth look at the MARA situation in an upcoming channel video, so stay tuned!

Until Next Time,