Marathon Digital announces $100 million Bitcoin purchase and readopts a strategy of total preservation of its mined BTC.
The company now holds over 20,000 BTC, valued at nearly $1.3 billion, and plans to acquire even more on the open market.
After selling mined BTC to cover operational expenses last year, Marathon is returning to a ‘HODL’ strategy in response to the cryptocurrency market rebound.
New Bitcoin Purchase and Revised Strategy of Marathon Digital
Marathon Digital, one of the world’s leading Bitcoin miners, has recently purchased $100 million worth of BTC on the open market. The company announced that it will re-adopt its strategy of preserving all the bitcoins it mines, marking a return to its ‘HODL’ (Hold On for Dear Life) policy.
Bitcoin Holdings and Acquisition Plans
In a statement released on Thursday, Marathon revealed that it now holds over 20,000 BTC, valued at nearly $1.3 billion at current prices. The company also expressed its intention to acquire even more Bitcoin on the open market. Marathon’s Chief Financial Officer, Salman Khan, explained that the recent decline in the price of Bitcoin, combined with the financial strength of the company, has presented an ideal opportunity for them to increase their BTC holdings.
As of June 30, Marathon had $268 million in cash. The company plans to release its financial results for the second quarter on August 1.
Return to HODLing After a Selling Period
For nearly a year, Marathon had started selling the BTC it mined to fund its operational expenses, a decision made during the crypto winter. Prior to this period, the strategy of preserving all mined bitcoins was common among miners, especially during market uptrends. However, the market crash last year led many miners, including Marathon, to sell off their digital assets to cover costs.
Renewed Confidence in Bitcoin
Fred Thiel, President and CEO of Marathon, stated that the readoption of the ‘HODL’ strategy reflects the company’s confidence in the long-term value of Bitcoin. Thiel said:
We firmly believe that Bitcoin is the best treasury reserve asset in the world and support the idea that sovereign funds should hold it. We also encourage governments and companies to consider BTC as a reserve asset.
Market Influence and Outlook
The crypto market has shown signs of recovery this year, partially due to the approval of Bitcoin Spot ETFs in the United States. This approval has attracted new investors, helping BTC reach new highs. Currently, although Bitcoin is trading below its all-time peak of over $70,000, it remains around $64,000, marking a 51% increase this year.
