Crypto Stocks Tumble as Bitcoin Falls Below $90,000; Marathon Digital (MARA) Faces Earnings Test #CriptoNews

• Crypto-related stocks including MARA, Robinhood, and Strategy plunged as Bitcoin fell below $90,000
• Marathon Digital (MARA) is set to report Q4 earnings on February 26 with expected EPS of -$0.13
• MARA reported a 13% decrease in Bitcoin production in January, down to 750 bitcoins
• The company currently holds 45,659 BTC worth approximately $4.4 billion
• Analysts maintain a “Moderate Buy” consensus on MARA stock despite a 52% decline over the past year

Crypto-related stocks experienced sharp declines on Tuesday as Bitcoin dropped below the $90,000 mark, sending ripples through Wall Street. Major players in the crypto space, including Marathon Digital (MARA), Robinhood (HOOD), and Strategy (MSTR), all saw their stocks tumble to November lows amid broader market uncertainty.

Marathon Digital was particularly hard hit, with shares dropping 11% to $12.41 before recovering slightly with a modest 1.8% gain in after-hours trading. The Bitcoin mining company is now facing additional pressure as it prepares to release its fourth-quarter earnings report on February 26 after markets close.

According to analyst estimates, MARA is expected to report earnings per share of -$0.13 on revenue of $188.55 million. These figures represent a 117.6% decrease in earnings but a 20.2% year-over-year increase in revenue. The company has shown mixed results in the past, beating earnings estimates only four times in the last eight quarters.

The negative earnings outlook stems from Marathon’s strategy of holding onto more of its mined Bitcoin rather than selling it on the open market. This approach prevents the company from realizing profits in the short term while building up its Bitcoin reserves for potential future gains.

In its latest production update, Marathon reported mining 750 bitcoins in January, marking a 13% decrease from the previous month. The company maintained its energized hash rate at 53.2 EH/s, with no new miners brought online during the period. Marathon now holds a total of 45,659 BTC, valued at approximately $4.4 billion at current prices.

Other crypto-exposed companies faced similar challenges on Tuesday. Robinhood saw its stock slide 8% to $45.92, though it managed to recover 2.6% in post-market trading. Strategy, which had reached nearly $400 in January, continued its downward trend with an 11% drop to $250.51, followed by a slight 1.7% rebound after hours.

Coinbase (COIN) shares fell 6.4%, while Riot Platforms (RIOT) and Hut 8 (HUT) declined by 6.7% and over 10%, respectively. The situation was even worse for Metaplanet in Japan, which plummeted 17% in one of its steepest single-day losses on record.

The sell-off in crypto stocks directly reflects Bitcoin’s recent struggles. The leading cryptocurrency has lost 17% since reaching its all-time high above $108,000 and briefly touched $86,000 on Tuesday. This marks the first time Bitcoin has traded below $90,000 since November 2024.

Other major cryptocurrencies weren’t spared from the downturn. Ethereum (ETH), Dogecoin (DOGE), XRP, and Solana (SOL) all posted sharp intraday losses, though they showed signs of modest recovery by the end of the trading session.

Market volatility has persisted in the crypto sector for five consecutive weeks. Several factors have contributed to the uncertainty, including post-election speculation and changing U.S. policies on digital assets. President Donald Trump’s executive order on cryptocurrencies, which includes provisions for a U.S. Treasury digital reserve, has raised questions about its potential impact on stablecoins and regulation.

A major security breach at Bybit and rising inflation concerns have further dampened investor sentiment. The Bitwise Crypto Index Fund (BITW), which tracks the top 10 cryptocurrencies, gained 2% last week but remains 8% lower year-to-date.

Analysts maintain optimistic outlook on MARA stock

Despite the recent market volatility, analysts maintain a cautiously optimistic outlook on MARA stock. Wall Street has assigned a “Moderate Buy” consensus rating based on three Buys and seven Holds, with no Sell recommendations in the past three months. The average price target for MARA stands at $27.67 per share, suggesting a potential upside of nearly 98% from current levels.

The market’s attention now turns to whether Bitcoin can reclaim the $90,000 threshold in the coming days. This price level has become psychologically important for investors who are trying to determine if the current downturn represents a temporary correction or the beginning of a more extended bearish phase.

As Marathon Digital approaches its earnings announcement, investors will be watching closely for any signs of operational improvements or strategic shifts that could help the company navigate the current market turbulence. The company’s large Bitcoin holdings could prove either advantageous or problematic depending on how cryptocurrency prices move in the months ahead.

Bitcoin’s recent price drop coincided with a batch of newly transferred coins from dormant wallets, adding to selling pressure. Market analysts are now looking for stabilization signals before making predictions about the next major price movement.

Marathon Digital’s stock currently trades at a fraction of its all-time high, but the company’s substantial Bitcoin holdings and mining capacity continue to make it a key player in the crypto mining sector as the market navigates through this period of heightened uncertainty.

Crypto stocks plunged to November lows as Bitcoin fell below $90,000, with MARA dropping 11% ahead of earnings while holding 45,659 BTC worth $4.4 billion.