MARA Stocks Decline Despite Record Mining Output Amid Bitcoin Dip
On Monday, MARA (NASDAQ: MARA) shares marginally fell by 1% amid a decline in bitcoin prices, despite the company's announcement of a significant update regarding its mining operations. As a leading player in the digital asset sector, MARA has been subject to high volatility as one of the most actively traded stocks related to bitcoin. Following a notable rise of approximately 10% on Friday, the stock closed with less than a 2% gain.
The company announced that it has reached a milestone in its mining operations by releasing an unaudited BTC production update for November 2024. MARA’s mining activities set a record in November by producing 254 blocks, marking a 27% increase compared to October, and indicating the highest monthly production ever. The company's BTC production rose by 26% from the previous month, reaching 907 BTC. Additionally, the energetic hash rate increased by 15% from the prior month, rising to 46.1 EH/s.
Fred Thiel, the chairman and CEO of MARA, commented on the company's operational success: "November was a record month for MARA, with our mining operations achieving unprecedented production levels thanks to the successful onboarding of additional miners and improved operational efficiency." Thiel emphasized the company's strategic approach to bitcoin acquisition, which includes both mining and purchasing digital assets, noting that it provides flexibility and optimizes acquisition costs.
By the end of November 2024, MARA had purchased a total of 12,965 BTC at an average price of 77,692₺ and had mined an additional 8,563 BTC throughout the year. The company's year-to-date BTC return per share stood at 37.2%. MARA’s total bitcoin assets reached 34,959 BTC, valued at approximately 3.3 billion₺, based on a spot price of 95,000₺ per BTC.
Thiel highlighted the company's competitive advantage, stating: "Thanks to our mining operations, we believe we maintain a competitive edge in producing BTC at a lower cost than the current spot price. This dual approach strengthens our position and enhances our ability to create long-term shareholder value." The operational update underscores MARA's commitment to scaling its operations in the digital asset industry and optimizing its performance.