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Why did Marathon Digital stock pop today? (NASDAQ:MARA)

Stacked cryptocurrency coins
Written by Publishing Team

Stacked cryptocurrency coins

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Digital Marathon (NASDAQ:MARA) surged 14% in late trading on Wednesday in the session after President Biden announced his executive order for government agencies to Examine the benefits and risks of cryptocurrencies as he seeks to keep the US in a leadership role as an innovator.

The plan gave investors and industry confidence that the government will provide clarity on digital asset regulations, making it easier for crypto-related companies to operate. It also implies that crypto won’t be regulated out of existence.

The government’s involvement may bring more investors into the crypto pool, said Charlotte Principato, financial services analyst at Morning Consult. “More US consumers who do not want to see more regulated cryptocurrencies and fear for the impact cryptocurrencies have on financial stability. Biden’s recent announcement will hearten these individuals, and could make them more comfortable dipping their toe into the crypto world,” she said.

Bitcoin (BTC-USD +8.9%) jumped above $42K, ether (ETH-USD +6.3%), Binance coin (BNB-USD .) +3.2%), solana (SOL-USD +6.5%), cardano (ADA-USD .) +6.8%).

With the gains in cryptocurrencies themselves, many publicly traded crypto miners rose at least 10%, including Riot Blockchain (RIOT) +12.1%Greenidge Generation (GREE .) +12.5%), CleanSpark (CLSK .) +10.4%), and Hut 8 (HUT +11.0%).

Stocks in companies that operate in the crypto ecosystem, such as exchanges and facilitators, also rose robustly. Such as Coinbase Global (COIN +10.8%), Galaxy Digital Holdings (OTCPK:BRPHF .) +11.5%), Bakkt Holdings (BKKT .) +20.3%), and Silvergate Capital (SI +18.4%).

Also see: New crypto mining ETF hits the market

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