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Published on: Jul 26, 2024
#Crypto 360
The world’s largest Bitcoin mining company Marathon Digital has purchased $100 million in BTC tokens in the open market.
Marathon Digital Holdings, Inc. released a press release yesterday, stating that the Bitcoin (BTC) miner currently holds over 20,000 BTC (worth $1.3 billion) on its balance sheet. It said Marathon will adopt a full HODL (or hold on for dear life) approach towards its bitcoin treasury policy.
It means the firm will keep retaining all the Bitcoin it mines. It will also strategically purchase Bitcoin in the open market periodically. Marathon’s chairman and CEO Fred Thiel said:
"Adopting a full HODL strategy reflects our confidence in the long-term value of bitcoin."
Marathon’s chief financial officer, Salman Khan, said:
“Bitcoin’s recent price decline, coupled with the strength of our balance sheet, afforded us an opportunity to add to our holdings. We look forward to continuing to leverage our technological expertise to support Bitcoin and distributed digital asset ecosystems.”
Most mining establishments, including Marathon Digital, were forced to sell their mined cryptocurrencies last year to cover their operating expenses and general corporate expenses. Marathon’s return to a HODL strategy signifies the mining industry’s growing confidence in the crypto market after institutional support was granted to crypto in the form of spot bitcoin exchange-traded funds (ETFs) in the U.S. in January this year, which led to the months-long price rally.
In fact, BTC hit its all-time high (ATH) of $73,750 on 14 March. Bitcoin was trading below $67K at press time and is on a quest to cross the $70k mark.
Source: BTC/USDT, BitDelta
In June, Marathon Digital produced 590 Bitcoins. The firm's operating fleet increased to approximately 250,000 Bitcoin miners capable of producing 31.5 EH/s. The firm achieved a peak overall hash rate of 28.3 EH/s in June.
On 30 June, Bitcoin’s hash rate stood at 514.9 EH/s. Thus, Marathon held 5% of the global Bitcoin computing power at the time.
Marathon Digital owns operations in Granbury and Garden City in Texas and Kearney in Nebraska. It also has facilities at McCamey in Texas and Ellendale and Jamestown in North Dakota, which are hosted by third parties.
As far as its balance sheet is concerned, Marathon held $268 million in cash and cash equivalents at the end of June. Marathon’s combined balance then stood at $1.42 billion, and we estimate its current balance to be approximately $1.52 billion.
The company will announce its second quarter earnings on 1 August. The MARA stock on Nasdaq seems to be mirroring Bitcoin’s movement on the chart. It fell 1.89% to close at $20.28 on 25 July.
Marathon Digital has a market cap of 5.73 billion, making it the world’s largest Bitcoin miner. Follow the BitDelta Blog to get the latest updates in the finance and crypto markets.
This article is for informational purposes only and not intended as investment or financial advice. It contains opinions and speculations that are subject to change without notice.
The author and publisher disclaim any liability for decisions made based on the content of this article. Readers are advised to conduct their own research and consult a financial advisor before making investment decisions.
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