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A couple of big Bitcoin miners are planning to sell their stock in the face of a drop in token prices that has led other miners to trade in some their Bitcoin holdings.
Marathon Digital Holdings Inc. and Hut 8 Mining Corp. have both filed with the Securities and Exchange Commission for the option to sell company stock for cash.
The two are likely in bid to stay flexible in the wake of Bitcoin’s dramatic fall that could force a shakeout of miners with less efficient operations.
Investors in Marathon Digital Holdings saw new options begin trading this week, for the first of April expiration. The put contract at the $26.00 strike price has a current bid of $3.85. If an investor was to sell-to-open that put contract, they are committing to purchase the stock at $26.00, but will also collect the premium, putting the cost basis of the shares at $22.15 (before broker commissions). To an investor already interested in purchasing shares of MARA, that could represent an attractive alternative to paying $26.62/share today.
Because the $26.00 strike represents an approximate 2% discount to the current trading price of the stock (in other words it is out-of-the-money by that percentage), there is also the possibility that the put contract would expire worthless. The current analytical data (including greeks and implied greeks) suggest the current odds of that happening are 61%. Stock Options Channel will track those odds over time to see how they change, publishing a chart of those numbers on our website under the contract detail page for this contract.
The parent company operates three active wholly-owned subsidiaries: Hut 8 Holdings Inc., which was incorporated in British Columbia, Canada; Hut 8 Asset Management Inc., which was incorporated in Bridgetown, Barbados, and Hut 8 High Performance Computing Inc., which was incorporated in British Columbia (“Hut 8 HPC”). Hut 8 beneficially owns, or controls or directs, directly or indirectly, 100% of the voting common shares of the above-mentioned subsidiaries.
