Marathon Digital Holdings Inc. shares are on watch Monday as Bitcoin surged past $123,000.

What To Know: The move comes amid growing market optimism fueled by the start of “Crypto Week” on Capitol Hill, where lawmakers are set to vote on key cryptocurrency legislation, including the Clarity Act and a bill on stablecoin oversight. These votes are seen as a potential turning point for institutional adoption of digital assets, raising expectations for increased capital inflows into the crypto sector.

Marathon, one of the largest publicly traded Bitcoin miners, stands to benefit directly from Bitcoin's rally. As of June 30, the company held nearly 50,000 Bitcoin on its balance sheet, making its stock highly sensitive to moves in the cryptocurrency market.

On top of its Bitcoin exposure, MARA also carries a significant short interest of around 26%, positioning it as a candidate for a potential short squeeze if Bitcoin's upward momentum continues and regulatory developments favor the crypto market.

The broader Bitcoin mining sector is also moving higher in response to Bitcoin's price action and the possibility of regulatory clarity. Companies like Riot Platforms and CleanSpark are seeing similar investor interest, especially with institutional capital showing signs of entering the market through products like BlackRock's iShares Bitcoin Trust. However, the post-halving environment presents profitability risks for miners, as higher power costs and the potential for tariff-driven inflation could pressure margins even as Bitcoin prices climb.

For now, those concerns appear overshadowed by bullish sentiment tied to market momentum and fear of missing out.

MARA Price Action: Marathon shares were down 0.29% at $19.09 at the time of writing, according to Benzinga Pro.

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