What in the world happened to Marathon Patent Group (MARA)?? Despite Bitcoin hitting a new all time high of $29,000 and RIOT Blockchain hitting new 52 week highs, MARA got decimated today. What caused this sudden rush of selling into the end of the day? Let’s investigate why Marathon Patent Group Stock is plummeting today and what you can do.
What Happened Today?
Throughout most of the day, RIOT Blockchain and Marathon Patent Group stocks were up significantly. In fact, RIOT made another 52 week high.
This is on top the fact that Bitcoin continues to hit new all time highs virtually every day.
Most of the day, MARA traded around $12, however, it clearly was not making new highs along with its crypto colleagues.
Right at the end of the trading day, MARA began to plummet.
It closed the day at $10.88 according to WeBull, down from a high $12.95.
To add to this strange nosedive, the company announced that it would be buying 70,000 S-19 ASIC Miners.
According to Yahoo Finance:
LAS VEGAS, Dec. 28, 2020 (GLOBE NEWSWIRE) — Marathon Patent Group, Inc. (NASDAQ:MARA) (“Marathon” or the “Company”), one of the largest enterprise Bitcoin self-mining companies in North America, has entered into a contract with Bitmain to purchase 70,000 Antminer S-19 ASIC miners.
Under the terms of the agreement, Marathon anticipates receiving an initial batch of 7,000 S-19 miners in July 2021 and the final shipment in December 2021. Once all miners are fully deployed, the Company’s mining fleet will consist of more than 103,000 miners capable of producing 10.36 EH/s. This landscape changing purchase of these miners more than triples the size of Marathon’s existing fleet of 33,000 miners.
In all honesty, we scoured the internet, we could not find a direct reason for this massive dump.
However, we have three theories.
First, in all likelihood, the reality is that this is a shakeout by the big boys. Massive short right before the big pump higher.
Considering there was no news that we are aware of from the company, this is the most likely scenario.
Usually, there are massive dumps to shake out the weak hands.
Smart Money targets these thinner, more volatile, lower market cap companies to pump and dump or dump and pump.
This happened recently with LAZR, when someone started a false rumour about the company losing one of its biggest clients, MobileEye.
This dip was rapidly bought as shorts were squeezed into oblivion.
The second theory is that insiders used information not available to the public to dump the price. This can be for a variety of reasons. For example, they sold a crapload of naked calls (call options not backed up by the underlying security) on the stock, then turned around and dumped it to collect the premium.
Finally, there is a possibility that the company itself has decided to dilute the stock, but has not made this public yet.
Insiders could be aware of this information and used it to their advantage…which is illegal by the way.
In any case, I am sure we will find out the answer very soon. Perhaps a response from the company on recent trading activity.
For those that get in earlier today, trying to follow the trend, we feel you. We have been there, and it is painful. As RIOT, Bitcoin and the other cryptos pump to 52 week and all time highs, MARA dumped. It is very unfair. However, this dump has actually presented a pretty good buying opportunity. To be honest, we bought some right into the end of the day around $10.90. However, be cautious, these types of random disintegrations do not always end well. We have an extreme risk appetite and took this trade. We have also been loaded on RIOT since the publication of our first article on the subject. To date, we are doing very well, especially on Bitcoin, which is up almost 200% from our first article on the crypto.
In any case, we will be updating on MARA as soon as we get all the details.
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