Why MARA Holdings (MARA) Shares Crashed Yesterday

We recently published a list of 10 Firms Mirror Wall Street Decline. In this article, we are going to take a look at where MARA Holdings Inc. (NASDAQ:MARA) stands against other firms mirroring Wall Street decline.

Wall Street’s main indices suffered a bloodbath on Tuesday, as investors shifted to other higher-yielding assets following better Treasury yields.

The Nasdaq Composite led the drop, losing 1.89 percent, followed by the S&P 500 declining 1.11 percent. Meanwhile, the Dow Jones dipped by 0.42 percent.

The overall market downturn dragged down the prices of these 10 companies. In this article, let’s explore the reasons behind their decline.

To come up with Tuesday’s top losers, we considered only the stocks with at least $2 billion in market capitalization and $5 million in daily trading volume.

An aerial view of a bustling financial district, with skyscrapers and a large financial institution in the city center.

MARA Holdings Inc. (NASDAQ:MARA)

Shares in MARA Holdings (NASDAQ:MARA) dropped by 7.20 percent or $1.48 on Tuesday to close at $19.07 apiece as investors resorted to profit-taking following Monday’s gains and news that it loaned 7,377 of its Bitcoin holdings.

Investors took the news as a potential risk to the company’s portfolio, especially as it represents as much as 16.4 percent of its reserves. According to the company, the move to loan to third parties was to help generate additional income.

“There has been significant interest in MARA’s bitcoin lending program,” said MARA Holdings (NASDAQ:MARA) vice president for investor relations Robert Samuels on X. “It focuses on short-term arrangements with well-established third parties. It generates a modest single-digit yield. It has been active throughout 2024. The long-term objective is to generate sufficient yield to offset operating expenses.”

Overall, MARA ranks 10th on our list of firms mirroring Wall Street decline. While we acknowledge the potential of MARA as an investment, our conviction lies in the belief that AI stocks hold greater promise for delivering higher returns and doing so within a shorter time frame. If you are looking for an AI stock that is more promising than MARA but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock.

READ NEXT: 8 Best Wide Moat Stocks to Buy Now and 30 Most Important AI Stocks According to BlackRock

Disclosure: None. This article is originally published at Insider Monkey.