Marathon Digital, one of the prominent bitcoin miners, recently announced its acquisition of $100 million worth of BTC in the open market. The company stated that it will be reverting back to its original strategy of holding all mined bitcoin on its balance sheet. This decision comes as Marathon now holds over 20,000 bitcoins, valued at nearly $1.3 billion based on current prices, and intends to make further purchases in the open market.
The CFO of Marathon, Salman Khan, highlighted that the recent price dip in Bitcoin presented an opportunity for the company to increase its holdings. He emphasized the company’s commitment to leveraging its technological expertise to support the Bitcoin and distributed digital asset ecosystems. This move to adopt a ‘full HODL’ strategy marks a shift from Marathon’s previous approach of selling mined digital assets to cover operating expenses.
Fred Thiel, the chairman and CEO of Marathon, expressed confidence in the long-term value of Bitcoin and endorsed the idea of Bitcoin being utilized as a treasury reserve asset by governments and corporations. He encouraged other entities to consider holding Bitcoin as a reserve asset, emphasizing its potential as a wealth fund asset.
Following a challenging period in the crypto market, Bitcoin has begun to recover its losses this year, particularly with the approval of spot BTC exchange-traded funds by BlackRock in the U.S. This development has attracted more investors to the market and contributed to Bitcoin reaching a new all-time high price. Although Bitcoin has slightly retreated from its peak of over $70,000, it is still trading around $64,000, reflecting a 51% increase in value this year.
Marathon disclosed that it held $268 million in cash on its balance sheet as of June 30 and is scheduled to report its second-quarter earnings on August 1. The miner’s shares experienced a 2.5% decline in pre-market trading, mirroring a similar drop in Bitcoin’s value over the past 24 hours. The broader CoinDesk20 Index also saw a 5.4% decrease during the same period.
In light of Bitcoin’s current positive momentum, including heightened institutional support and a favorable macro environment, Marathon aims to focus on expanding the amount of Bitcoin it holds on its balance sheet. This strategic shift underscores the company’s belief in the enduring value of Bitcoin and its potential as a significant asset for financial reserves.
As the crypto market continues to evolve, Marathon’s decision to reinstate its ‘full HODL’ approach signals its confidence in Bitcoin’s long-term prospects and its commitment to actively participate in the thriving digital asset ecosystem.