Why Bitcoin-Related Stock Marathon Digital Is Seeing Blue Skies – Marathon Digital Holdings (NASDAQ:MARA)

Marathon Digital Holdings Inc (NASDAQ:MARA) shares are trading higher by 6.7% to $8.22 going into the close of Monday’s session. Shares of crypto-related stocks are trading higher following a spike in Bitcoin after traders circulated a now-refuted rumor of Bitcoin spot ETF approval.

BlackRock has refuted false information, confirming that their Bitcoin ETF application is still under review in response to Fox Business journalist Eleanor Terrett.

CoinTelegraph issued an apology for a misleading tweet about the BlackRock Bitcoin ETF and is currently conducting an internal investigation, with a commitment to sharing its findings with the public.

See Also: Cathie Wood Says ‘Hopes Are Rising’ For Bitcoin ETF Approval By SEC

Why This Matters To Marathon Digital

Marathon Digital Holdings is a company that primarily engages in Bitcoin mining. Bitcoin mining is a process that involves solving complex mathematical puzzles to validate transactions on the Bitcoin network and, in return, earning new Bitcoins.

When the price of Bitcoin rises, it directly impacts the profitability of mining operations. Miners like Marathon Digital can mine more Bitcoins and generate higher revenue when the Bitcoin price is higher.

In the stock market, traders often respond to rumors and news, even if they are later debunked. The mentioned rumor about a Bitcoin spot ETF approval could have triggered speculative trading in Marathon Digital’s stock.

Traders might have anticipated a potential positive impact on the company’s performance if a Bitcoin ETF were to be approved, even if the rumor turned out to be false.

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