Marathon Digital, a Bitcoin mining company, has recently made a significant investment in Bitcoin by purchasing $100 million worth of the cryptocurrency. This move is part of Marathon Digital’s new “HODL strategy,” which involves holding onto Bitcoin for the long term rather than selling it.
In a recent announcement, Marathon Digital revealed that they now hold over 20,000 BTC on their balance sheet as a result of this purchase. The company stated that they will not only retain all Bitcoin mined through their operations but will also make strategic open market purchases from time to time.
CEO of Marathon Digital, Fred Thiel, expressed confidence in the long-term value of Bitcoin, urging other governments and corporations to hold Bitcoin as a reserve asset. The company’s CFO, Salman Khan, explained that the recent price dip in Bitcoin presented an opportunity for Marathon Digital to increase its holdings.
Despite this positive development, Marathon Digital’s shares experienced a slight decline in pre-market trading following the announcement. However, this purchase aligns with the company’s ambitious goal to double its mining capacity in 2024, aiming for a hash rate of 50 EH/s.
Marathon Digital has been making significant strides in the cryptocurrency mining industry, surpassing competitors like Core Scientific and Riot Platforms in terms of hash rate. If the company successfully reaches its target hash rate of 50 EH/s, it will have more than doubled its capacity since the beginning of the year.
This investment by Marathon Digital underscores the growing interest in Bitcoin as a long-term investment asset, highlighting the company’s belief in the future potential of cryptocurrency. As the crypto market continues to evolve, Marathon Digital’s strategic approach to Bitcoin holdings positions them as a key player in the industry.