Marathon's Bitcoin Buying Spree
Marathon Digital has pulled off something again in the crypto world. The mining behemoth in Bitcoin has just struck a deal to stockpile $100 million in BTC and declared their return to a 'full HODL' strategy. I think this move is rather bold, given all that has been going on with market fluctuations lately.
What I know is that Marathon now has over 20,000 bitcoin in their treasury. That's a whopping $1.3 billion at current prices, and get this: they're not stopping there. They have plans to buy even more on the open market. Got to hand it to them; they're certainly not shy about putting their money where their mouth is.
What I find very intriguing is that Marathon's CFO, Salman Khan noted how the price dip of Bitcoin gave an opportunity to bulk up their holdings. The company is definitely treating them as if they're having a bargain sale. Smart move, if you ask me. They clearly are playing the long game here.
Now, let's rewind a bit. Marathon started selling some of their mined bitcoin last year to cover expenses. But now they're going back to holding everything they mine. I think that alone shows they're pretty optimistic about Bitcoin's future. Their CEO, Fred Thiel, went as far as referring to Bitcoin as the "world's best store of value asset."
That is quite a statement.
I've been keeping a very close eye on Bitcoin's performance this year, and, wow. It has been a wild ride. We just saw a new all-time high above $70,000, in part due to those spot Bitcoin ETFs getting approved. Sure, it is down a bit from there, but trading around $64,000 with over 50% year-to-date return is not bad at all.
To me, it even speaks volumes that Marathon is moving to HODL. Basically, they must be expecting further growth—they must count on more support from institutions and improvement in the economic environment. I think they might be onto something, but only time will tell if this strategy pays off.
Holding $268 million in cash as of June 30th puts them in a comfortable position to make these big moves. Curious to see how all this plays out now in the upcoming earnings report on August 1.
I've noticed that Marathon's stock itself took a little hit in pre-market trading, down about 2.5%. Bitcoin itself dropped approximately the same in the last 24 hours. But, well, that's the crypto market for you: always on edge.
Posted Using InLeo Alpha