Key Takeaways
- Marathon Digital buys $100 million in bitcoin, resuming full HODL strategy.
- The miner now holds over 20,000 bitcoin worth nearly $1.3 billion.
- Bitcoin's recovery is fueled by increased institutional support, with prices up 51% this year.
Marathon Digital (MARA), one of the largest bitcoin miners, has purchased $100 million worth of bitcoin in the open market. The company will also readopt its “full HODL” strategy, holding all mined bitcoin on its balance sheet.
As of now, Marathon holds over 20,000 bitcoin, valued at nearly $1.3 billion. CFO Salman Khan highlighted that the recent decline in bitcoin’s price and the company’s strong financial position allowed them to increase their holdings. He stated:
We look forward to continuing to leverage our technological expertise to support Bitcoin and distributed digital asset ecosystems.
Last year, Marathon started selling its mined bitcoin to cover operating expenses due to the market downturn. The decision to resume holding all mined bitcoin reflects the company’s confidence in bitcoin’s long-term value. Marathon’s chairman and CEO, Fred Thiel, remarked,
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.
Bitcoin has recovered from its lows, spurred by increased institutional support, including BlackRock’s approval to offer spot BTC ETFs in the U.S. Despite a recent dip, bitcoin is trading around $64,000, up 51% this year.
Marathon’s recent financials reveal $268 million in cash as of June 30, with second-quarter earnings set to be reported on August 1. The company’s shares dropped 2.5% in pre-market trading, mirroring bitcoin’s decline over the last 24 hours.
