Can MicroStrategy (MSTR) Trading Volume Surge Help Marathon Digital (MARA)?

On Wednesday, we saw that MSTR trading volumes in dollar terms surpassed those for assets like SPY, one of the largest exchange-traded funds on the market.

MicroStrategy announced it purchased approximately $4.6 billion on Monday, its largest transaction series to date. The company, founded by Michael Saylor in 1989, has been executing a strategy of selling debt to fund its bitcoin purchases for years. It also buys bitcoin using cash generated from its traditional business.

On Monday, MicroStrategy upsized a previously announced convertible senior note offering to $2.6 billion, which will primarily go towards buying more bitcoins. These notes, available only to institutional investors, bear 0% and can be converted into cash or equity.

In this article, I would like to examine if MSTR surge in trading volume going to help MARA? I am holding a position in MARA and I believe MARA could move in tandem with MSTR.

For Bitcoin I am seeing that it has break away from the consolidation that i have written previously in one of my article, that should give BTC a good move towards $95,000 and above.

MSTR is up over 43% to $473 Wednesday. Shares have seen a nearly 910% increase in price since January while the S&P 500 has gained approximately 33%, according to Factset. Bitcoin is up nearly 110% year-to-date.

As we can see that MSTR the buying volume is increasing significantly and MACD is also doing a nice upside movement. This should continue and help MSTR to continue towards $550.

We are also seeing buying volume coming back for MARA, with BTC moving above $94,000 and MSTR making new highs, this crypto miner (MARA) should be able to benefit from the surge in MSTR and Bitcoin together.

We are also seeing that MARA is trading way above the short-term and long-term MA, and short-term is above long-term, this should give MARA investors confidence for move towards its previous high near $26.

MACD is forming a bullish crossover and MTF is giving strong uptrend, this should give MARA stock confidence to move higher.

I have confidence in MARA and MSTR as these two stocks should be benefiting from Bitcoin price rally, and there will be more fund inflows coming, and this should help MARA much as the benefit for mining more BTC is much higher.

I am expecting MARA to make a new highs as we await Bitcoin to reach $95,000 and above.

Appreciate if you could share your thoughts in the comment section whether you think MARA could ride on MSTR surge in trading volume and go for a new highs.

Disclaimer: The analysis and result presented does not recommend or suggest any investing in the said stock. This is purely for Analysis.