Marathon Patent Group Inc. (NASDAQ:MARA)
Marathon Patent Group Inc. (NASDAQ:MARA) fell 19% after announcing a definitive agreement to acquire 100% ownership of Global Bit Ventures. The acquisition will expand the company’s operations into the cryptocurrency business.
Global Bit Venture Acquisition
Global Bit Ventures has developed a robust infrastructure that Marathon Patent Group Inc. (NASDAQ:MARA) plans to take advantage of, in its pursuit of growth opportunities around digital currencies. According to Chief Executive Officer, Doug Croxall, the acquisition underscores the company’s commitment to enhancing shareholders value by pursuing alternative business directions.
Prior to the acquisition of Global Bit Ventures, Marathon Patent Group Inc. (NASDAQ:MARA) was focused on the business of acquiring patents and patent rights from owners and other ventures. The company generates a good chunk of its earnings from monetization of the patent portfolio through license discussions. However, with the acquisition of GBV, its revenue stream should receive a boost.
“We believe the acquisition of Global Bit Ventures will take advantage of an ongoing revolution in digital transactions conducted on blockchain as we see increasing adoption and proliferation of blockchain protocols in our everyday lives,” said Mr. Croxall.
GBV boasts of a technology that powers and secures blockchain by operating custom hardware and software. GBV currently owns 250GH/s of GPU mining servers and plans to add 14PH/s of ASIC servers to further strengthen its prospects in the merging industry. The company’s director, Charles Allen, expects the merger to position the company for rapid revenue growth in the years to come.
Marathon Patent Group Inc. (NASDAQ:MARA) has been trading in a downtrend for the better part of the year. Investor’s sentiments has hit all-time lows at the back of a strong sell-off wave. The stock is down by more than 70% for the year as it continues to trade near its 52-week low of $1.49 a share.
Reverse Stock Split
Separately, Marathon Patent Group Inc. (NASDAQ:MARA) has initiated a four-for-one reverse-split for its outstanding common stock. The reverse split will reduce the company’s common stock from about 32.4 million shares to 8.6 million shares. The company is hoping the split will shore up the stock price thereby bring the company into compliance with the NASDAQ Capital Market minimum average closing price of $1 a share.
I have no positions in any of the stocks mentioned, and have no plans to initiate any positions within the next 72 hours. All information, including any data, is provided without any guarantees of accuracy.
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About the author: Monica has an undergraduate degree in Accounting and an MBA she earned – with Honors. She has six years of experience in the financial markets and has been an analyst for the past two years.