Mining company Marathon Digital included in S&P index, stock price surges 18%

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Mining company Marathon Digital included in S&P index, stock price surges 18%

After the close of trading last Friday, credit rating agency S&P Global announced that the Bitcoin mining company Marathon Digital would be included in its S&P SmallCap 600 Index. Marathon Digital's stock, with the ticker symbol MARA, surged nearly 18% yesterday in response to this news, closing at $20.67, bringing its market value to $5.84 billion.

Marathon Digital Holds 17,631 Bitcoins

Credit rating agency S&P Global has included Bitcoin mining company Marathon Digital in its S&P SmallCap 600 index, signaling S&P Global's recognition of its liquidity and financial capabilities.

Marathon Digital, the company holding the most Bitcoins, owned a total of 17,631 Bitcoins as of April 30, 2024. In April, Marathon mined 850 Bitcoins, selling 600 to support monthly operations, manage its finances, and for general corporate purposes.

According to previous reports, CleanSpark CEO Zack Bradford believes that mining stocks will perform better post-halving, as it will lead to market share consolidation benefiting the winners more, while smaller and less efficient mining companies will be at a disadvantage. He expects the market to gradually consolidate into four major miners: CleanSpark, Riot, Marathon, and Cipher Mining.

Executive Stock Incentive Plan to Distribute $32.9 Million in Bonuses

Marathon Digital submitted an 8-K report to the U.S. Securities and Exchange Commission outlining its executive stock incentive plan, with a total bonus pool of $32.9 million. The three executives receiving bonuses include Marathon Digital CEO Fred Thiel, CFO Salman Khan, and General Counsel Zabi Nowaid.

The report states that the 2024 LTIP awards are based on the company's total shareholder return relative to a specified peer group index during the period from January 1, 2024, to December 31, 2024. 25% of the 2024 LTIP awards will vest on January 31, 2025, with the remaining vesting over 12 equal quarterly installments of 6.25% each, requiring three years to fully vest, contingent on the continued service of the three executives with the company.