Marathon Digital Increases Bitcoin Stash With $100M Purchase
Marathon Digital, the world’s largest Bitcoin mining company, has announced its latest purchase of $100 million worth of BTC, increasing its stash to more than 20,000 BTC.
According to a press release, Marathon is changing its approach to its Bitcoin treasury policy and adopting a full HDOL strategy. This means that the miner will hold all BTC produced during its operations and will periodically make more open-market purchases going forward.
Marathon Adopts BTC HODL Strategy
Marathon’s chief financial officer, Salman Khan, disclosed that the mining entity used to retain all of its bitcoins before 2023. The firm most likely offloaded some of its assets last year to cover operational costs and stay afloat.
Bitcoin’s current tailwinds, improving macro environment, and rising institutional support have given Marathon enough reason to revert to holding BTC and focusing on growing its stash. Thanks to its strong balance sheet, the company leveraged bitcoin’s recent plunge to scoop some more assets.
Fred Thiel, Marathon’s chairman and CEO, said: “Adopting a full HODL strategy reflects our confidence in the long-term value of bitcoin. 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.”
Marathon Diversifies Revenue
The latest BTC acquisition comes as Marathon works toward diversifying its revenue and mining operations. About a month ago, the firm disclosed that it made nearly $15 million worth of KAS from mining operations for the decentralized community-managed network Kaspa.
Notably, Marathon is not the only Bitcoin miner that has diversified to other networks and sectors; while some firms have ventured into artificial intelligence (AI), others are offering computing services or mining different cryptocurrencies. Since the Bitcoin halving slashed miner rewards by 50% in April, affected companies have begun spreading their wings in multiple directions to stay in business.
Bitfinex analysts say miner operations will become profitable henceforth due to bitcoin’s latest recovery. Although such entities no longer exert significant downward pressure on bitcoin’s price, Bitfinex experts have seen on-chain signals suggesting that they are almost done selling BTC to upgrade machinery and sustain operations.
Meanwhile, Marathon Digital is using the heat from its Bitcoin mining operations to heat a Finland community of roughly 11,000 residents.
The post Marathon Digital Increases Bitcoin Stash With $100M Purchase appeared first on CryptoPotato.
