MARA Holdings, Inc. (NASDAQ:MARA) closed Thursday at $12.40, a decline of 7.26%, as the broader bitcoin mining sector experienced a sharp selloff. U.S. markets were closed Friday for the July 4th holiday, leaving traders to digest the week's losses ahead of Monday's open. Over the past five trading sessions, MARA shares have fallen 14.72%, reflecting the broader weakness among cryptocurrency miners.
Short interest in MARA remains elevated, with 102.56 million shares shorted as of June 15, representing approximately 27.54% of the company's float. At Thursday's close, these short positions were valued at roughly $1.27 billion, according to Reuters data. The stock's average daily trading volume over the past 65 days stands at 43.54 million shares, implying that it would take about 2.4 days for short sellers to cover their positions at current activity levels.
The heavy short interest, while a potential risk factor, could also serve as a catalyst for a short squeeze if bitcoin prices stabilize or rally. Bitcoin was trading near $62,622 on Sunday, providing some support for mining stocks. However, the sector remains under pressure from declining cryptocurrency prices and regulatory uncertainty.
Recent insider transactions at MARA were limited to tax withholding events related to restricted stock unit (RSU) vesting. According to Form 4 filings submitted on July 2, CEO Fred Thiel, CFO Salman Khan, and General Counsel Zabi Nowaid had a total of 145,540 shares withheld at $13.89 each to cover tax obligations. The filings explicitly noted these were not open-market sales, alleviating concerns about insider selling.
MARA's trading volume on Thursday reached 50.63 million shares, which was 116% of the company's 65-day average. The stock touched an intraday low of $11.98, near the bottom of its current trading range of $11.98 to $14.09. This level will be closely watched by traders as a potential support point.
In comparison to its peers, MARA's short interest as a percentage of float is lower than CleanSpark Inc. (NASDAQ:CLSK), which reported 34.41%, but higher than Riot Platforms Inc. (NASDAQ:RIOT) at 15.98%, Cipher Mining Inc. (NASDAQ:CIFR) at 16.25%, and IREN Ltd. (NASDAQ:IREN) at 22.37%. The varying levels of short interest across the sector highlight differing investor sentiment and risk profiles.
MARA's strategic pivot toward power and data center operations, exemplified by the Long Ridge acquisition, adds a new dimension to the stock's narrative. The deal, valued at $1.5 billion including debt, involves a 505-megawatt gas power plant in Hannibal, Ohio, and over 1,600 acres of land with potential capacity exceeding 1 gigawatt. CEO Fred Thiel has emphasized that "power is the scarce input in AI," positioning MARA to benefit from the growing demand for energy-intensive AI computing. The transaction is expected to close in the second half of 2026, pending regulatory approvals from the Hart-Scott-Rodino Act and the Federal Energy Regulatory Commission.
MARA's balance sheet also contributes to the stock's volatility. As of March 31, the company held 35,303 bitcoin, valued at approximately $2.4 billion, including 5,742 bitcoin out on loan and 4,253 pledged as collateral. During the first quarter, MARA sold about 20,880 bitcoin for $1.5 billion, using the proceeds to reduce debt. CEO Thiel described this as a "capital allocation move" aimed at strengthening the balance sheet.
Looking ahead, traders will focus on whether MARA can hold above the $11.98 low from Thursday, the trajectory of bitcoin prices above the $62,000 mark, and any new developments regarding the Long Ridge deal. The high short interest suggests that any positive catalyst could trigger significant upward pressure, but the current bearish sentiment in the crypto mining sector may continue to weigh on the stock.
