Is Marathon Digital Holdings Stock a Buy?

Marathon Digital Holdings' (NASDAQ: MARA) stock plunged 27% on Nov. 15 after the Bitcoin (CRYPTO: BTC) mining company made two surprising announcements. First, it announced an upsized $650 million convertible senior notes offering to fund its purchases of additional Bitcoin miners. Second, it disclosed a Securities and Exchange Commission (SEC) subpoena that requested documents related to its data center contracts in Hardin, Montana.

Those two revelations dampened the market's enthusiasm for Marathon's stock, which had risen more than 3,000% over the past 12 months as it purchased and mined more Bitcoins. But could this pullback represent a rare buying opportunity for investors who can stomach the near-term volatility?

Marathon was once a patent holding company that bought patents, sat on them, and generated revenue through licensing deals and litigation. But last year it rebranded itself as a Bitcoin mining company and placed a long-term order for more than 100,000 high-end ASIC miners from Bitmain.

Source Fool.com