MARA Holdings, a leading crypto mining company, saw its stock plummet 5% in pre-market trading on Tuesday, March 4th, 2025. This decline came amidst a broader sell-off in crypto stocks, following skepticism surrounding former President Donald Trump's proposed U.S. strategic reserve of cryptocurrencies.
On Sunday, Trump announced plans to stockpile several digital assets, including Bitcoin, Ether, XRP, Solana, and Cardano, as part of a strategic crypto reserve. While this initial news fueled a rally in crypto stocks, concerns quickly emerged over the inclusion of smaller, riskier tokens like XRP, Solana, and Cardano.
Critics argued that these lesser-known tokens lack the same level of decentralization, scarcity, and store-of-value characteristics as Bitcoin, diluting the potential value of the strategic reserve. This skepticism, coupled with broader market uncertainties surrounding Trump's proposed tariffs on Mexico and Canada, led to a sell-off in crypto-related stocks, including MARA Holdings.
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