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Bitcoin mining giant Marathon Digital (MARA) has announced the purchase of an additional $100 million worth of BTC, bringing its total holdings to over 20,000 BTC (worth $1.3 billion).
This acquisition represents nearly 0.1% of the total Bitcoin supply of 21 million.
Strategic Purchase Amid Favorable Market Conditions
While Marathon Digital did not specify the exact timing or average price of the purchase, CFO Salman Khan highlighted that the firm took advantage of favorable market conditions to make opportunistic buys. Based on the dollar amount and previous holdings of 18,536 BTC at the end of June, it is estimated that Marathon Digital acquired around 1,500 BTC at prices ranging from $54,000 to $68,000 this month.
This move follows MARA’s previous acquisition of $150 million worth of Bitcoin in January 2021, though the majority of its holdings have been generated from mining operations. “The vast majority of the Bitcoin reflected on our balance sheet has been generated from our mining operations,” Khan said.
Today, we are announcing that MARA has purchased $100,000,000 worth of BTC. And effective immediately, we are once again adopting a full HODL strategy. Learn more about our #Bitcoin Strategic Reserve: pic.twitter.com/pYxiclOtQa — MARA (@MarathonDH) July 25, 2024
MARA has also announced the adoption of a full “HODL” strategy for its Bitcoin treasury policy. This approach entails retaining all mined Bitcoin and making additional strategic acquisitions periodically.
“Adopting a full HODL strategy reflects our confidence in the long-term value of Bitcoin,” said MARA Chairman and CEO Fred Thiel. “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.”
Reduced Bitcoin Sales and Increased Institutional Support
According to a recent report from research and brokerage firm Bernstein, Marathon Digital has reduced the proportion of Bitcoin sold as a percentage of production from 56% in 2023 to 31% in 2024. This shift signals a broader trend among large Bitcoin miners who are selling less of their production in 2024 compared to 2023.
“Prior to last year, the company used to hold all of its Bitcoin,” Khan added. “Given Bitcoin’s current tailwinds, including increased institutional support and an improving macro environment, we are once again implementing this strategy and focusing on growing the amount we hold on our balance sheet. Bitcoin’s recent price decline, coupled with the strength of our balance sheet, afforded us an opportunity to add to our holdings.”
Marathon Digital Diversifies into Altcoin Mining
In addition to its Bitcoin strategy, MARA is expanding its operations into altcoin mining to diversify revenue streams, particularly in anticipation of the next Bitcoin halving. Last month, the company deployed its first Kaspa application-specific integrated circuit (ASIC) miners.
As MARA continues to strengthen its bitcoin holdings and explore new opportunities in the cryptocurrency mining sector, it remains a key player in the evolving landscape of digital assets.
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