Bitcoin mining company Marathon Digital recently made a significant move by acquiring $100 million worth of bitcoin (BTC) from the open market. The company has decided to shift its strategy back to holding the BTC it mines, rather than selling it off to cover operational expenses, as it did during the previous bear market.
Marathon Digital now holds over 20,000 BTC on its balance sheet and has announced that it will be implementing a full HODL approach to its bitcoin treasury policy. This means that the company will retain all the bitcoin it mines through its operations and will also make strategic purchases from the open market periodically.
The decision to revert to a HODL strategy comes as the price of BTC is on the rise once again. Many miners, including Marathon Digital, adopted a similar strategy during the previous bull run, only to sell off their holdings during the crypto winter. However, with the current bullish trend in the market, Marathon Digital’s CEO and chairman, Fred Thiel, expressed confidence in the long-term value of bitcoin.
Thiel stated, “We believe bitcoin is the world’s best treasury reserve asset and support the idea of sovereign wealth funds holding it. We encourage governments and corporations to all hold bitcoin as a reserve asset.” The company’s CFO, Salman Khan, also highlighted the favorable market conditions for bitcoin, including increased institutional support and a positive macroeconomic environment.
With $1.3 billion worth of BTC and $268 million in cash on its balance sheets, Marathon Digital is well-positioned to continue expanding its holdings and leveraging its technological expertise to support the growth of the bitcoin and digital asset ecosystems. The company’s decision to adopt a HODL strategy once again reflects its confidence in the future potential of bitcoin as a valuable asset and indicates a long-term commitment to its growth and adoption.
