Marathon Digital Holdings (NASDAQ:MARA) may be on the verge of a major short squeeze. The crypto mining company is in full focus today and there are multiple factors pushing MARA stock up.
For one, Wall Street has launched its own crypto exchange in the form of EDX Markets, a platform backed by some of the field’s biggest names. Bitcoin (BTC-USD) prices have also surged recently on short squeeze momentum. However, it isn’t just the leading crypto enjoying the ride right now. Data indicates that MARA stock may be marked as a likely short squeeze candidate as the new crypto rush continues.
Is Marathon the next big squeeze that retail investors have been looking for? Let’s take a closer look at shares and assess what investors can expect.
A MARA Stock Short Squeeze?
Many firms in the crypto space are surging this week and MARA stock is no exception. As of this writing, shares are up 29% for the past five days, displaying a steady growth trajectory. While trading has been somewhat volatile today, shares are also up 7% as of this writing. For a company that traded at less than $4 per share at the start of 2023, this type of growth is noteworthy.
When a meme stock starts surging this way, though, a question has to be asked: Is it the next short squeeze? In the case of MARA stock, it certainly could be.
According to data from Fintel, short interest accounts for more than 25% of MARA’s float. Short sellers have just 0.91 days to cover their positions as well. The platform currently grants shares a high Short Squeeze Score of 77.68 out of 100. As of this morning, there are only 200,000 shares of MARA stock “available to be shorted at a leading prime brokerage” sampled by Fintel.
On top of all of that, interest from retail investors has been rising steadily. Data from ApeWisdom indicates that mentions of MARA stock on r/WallStreetBets — and across social media in general — have climbed lately. Sentiment on both the subreddit and across social media is currently at 75%. All of this suggests that Marathon Digital is a likely short squeeze candidate as the new crypto rally continues. If the momentum sustains, MARA could certainly push higher.
On the date of publication, Samuel O’Brient did not hold (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.
