Jul 28, 2024
According to NewsBTC, Marathon Digital, a leading Bitcoin mining company, has made headlines with a significant investment of $100 million in Bitcoin (BTC). This major purchase underscores the company's confidence in the long-term potential of the cryptocurrency, despite recent price fluctuations.
MARA's Bold $100 Million BTC Purchase
In a press release dated July 25, Marathon Digital, now rebranded as MARA, announced the acquisition of an additional $100 million worth of BTC. This latest investment has significantly boosted MARA's Bitcoin holdings, bringing the total to approximately 20,000 BTC, valued at around $1.3 billion. This amount represents nearly 0.1% of Bitcoin's maximum supply of 21 million BTC.
MARA's substantial BTC acquisition comes during a period of gradual recovery in the crypto market, following earlier downturns. The company capitalized on recent price dips to strengthen its position, reflecting a strategic, long-term outlook on Bitcoin's potential.
At the time of writing, Bitcoin is trading at $68,031, showing a 1.4% increase over the last 24 hours and a 2.24% rise over the past week, according to CoinMarketCap. Based on these current prices, MARA's recent purchase likely amounts to around 1,500 BTC.
Although MARA has not disclosed the average purchase price for this $100 million investment, the company has announced a commitment to a full "Hold On For Dear Life" (HODL) approach to its Bitcoin holdings. This strategy involves retaining all the BTC mined during operations, rather than selling it.
In response to this milestone, Michael Saylor, co-founder and former CEO of MicroStrategy, praised MARA's acquisition and suggested that the company aim for 26,200 BTC, a nod to the standard marathon distance of 26.2 miles.
Bitcoin Mining Giant Unveils Full HODL Strategy
MARA has also committed to a full HODL strategy for its Bitcoin treasury, indicating that it plans to keep all mined BTC and make strategic open market purchases to further increase its holdings. Fred Thiel, MARA's chairman and CEO, expressed strong confidence in Bitcoin's long-term value, advocating for its recognition as a global reserve asset. He encouraged governments and corporations to consider Bitcoin as a key treasury reserve asset, highlighting its potential benefits.
Additionally, MARA's CFO, Salman Khan, noted that while the company once held all its Bitcoin, recent market conditions, rising institutional interest, and an improving macroeconomic environment have reinforced their decision to fully adopt a HODL strategy.
