MARA Holdings Inc. (NASDAQ:MARA) clawed back to the $11 territory on Thursday, surging 15.54 percent to finish at $11.15, as investors positioned their portfolios after President Donald Trump renewed his push to Congress to speed up the passage of the Clarity Act.
The bill is a proposed US federal law establishing a regulatory framework for cryptocurrencies by dividing oversight between the Securities and Exchange Commission and the Commodity Futures Trading Commission. Its passage is expected to bolster the adoption and wider use of cryptocurrencies in the US, and benefit crypto mining and treasury firms, including MARA Holdings Inc. (NASDAQ:MARA), which owns 35,577 Bitcoins as of the first half of the year.
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At market close, Bitcoin clawed its way back to the $72,000 territory, and further to $73,000 as of writing, following Trump’s comments.
For MARA Holdings Inc. (NASDAQ:MARA), however, it is worth watching if the rally is simply another Bitcoin-driven bounce or the official start of a more durable rerating.
Bitcoin Seen Hitting $100K by Year-End
Analysts believed that prices of cryptocurrencies could surge by 50 percent by the end of the year.
For his part, Standard Chartered Digital Assets Research Head Geoffrey Kendrick, said that traders should now be positioning for Bitcoin’s possibility of hitting $100,000 by the end of the year.
Investors seeking higher exposure to crypto assets were quick to gobble up shares in mining companies such as MARA Holdings Inc. (NASDAQ:MARA), Bitdeer Technologies, Cipher Digital, Riot Platforms, and CleanSpark, among others.
Is The Rally Sustainable?
MARA Holdings Inc. (NASDAQ:MARA) recently announced financial and operating highlights in the second quarter of the year, which showed its earnings performance was far from clean.
During the period, the company swung to a net loss attributable to shareholders of $609.7 million from $808 million attributable net income in the same period last year.
It said losses included a $343 million loss related to the fair value of digital assets, which means that any rebound in the prices of Bitcoin—potentially to be helped by the Clarity Act’s passage—could prove critical to its recovery in the succeeding quarters.
The bill remains stalled in the Senate amid political disagreements and opposition from the banking industry, but a procedural vote is expected on September 15, making the date an important potential catalyst for crypto-related stocks.
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