Investing.com -- Shares of MARA (NASDAQ: MARA) climbed 4% today, recovering from a significant drop in the previous session, which was influenced by hawkish comments from the Federal Reserve that negatively impacted risk assets, including Bitcoin. The cryptocurrency's value briefly dipped to $98,760 before rallying back above $102,000, a recovery that appears to have buoyed MARA's stock performance.
MARA today reported a BTC Yield of 60.9% for the period from January 1, 2024, to December 18, 2024. This key performance indicator reflects the percentage change in the ratio of the company's Bitcoin holdings compared to its Assumed Fully Diluted Shares Outstanding. The company's disclosure indicates a strategic focus on acquiring and holding Bitcoin, which they believe can add value to shareholders in relation to its Bitcoin holdings.
The BTC Yield is used by MARA to assess the effectiveness of its Bitcoin acquisition strategy. For the quarter spanning from October 1, 2024, to December 18, 2024, the company's BTC Yield stood at 22.5%. The yield metric serves as a gauge for investors to understand the company's use of equity capital in funding Bitcoin purchases and whether these actions are considered accretive to shareholder value.
MARA's total Bitcoin holdings increased from 15,174 at the end of 2023 to 44,394 by December 18, 2024. During the same period, the company's Assumed Fully Diluted Shares Outstanding grew from 254,888 to 463,400, factoring in the potential conversion of all outstanding convertible notes, the exercise of all outstanding warrants, and the settlement of all outstanding restricted stock units and performance-based restricted stock units.
The company's emphasis on its Bitcoin strategy and the positive BTC Yield report seem to have resonated with investors, leading to today's uptick in the stock price. With the recent volatility in cryptocurrency markets, MARA's ability to navigate and capitalize on Bitcoin's fluctuations remains a focal point for shareholders and potential investors.
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