Marathon Digital, a major name in Bitcoin mining, said it would buy $100 million worth of Bitcoin (BTC) as part of its ongoing “hold on” (HODL) plan. This significant purchase, which was announced in a recent post on X (which used to be Twitter), gives Marathon more than 20,000 BTC in Bitcoin.
The American business that mines cryptocurrencies said it will now keep all the Bitcoin it has mined and will also buy Bitcoin on the open market from time to time for strategic reasons. Marathon is clearly sure that Bitcoin will have value in the future because they made this move. CEO of Marathon Digital, Fred Thiel, stressed that this plan makes governments and businesses more likely to think about keeping Bitcoin as a reserve asset. “Our purchase shows that we believe Bitcoin will have long-term value,” Thiel said, encouraging others to see its promise as a strong reserve asset.
Marathon Digital Acquires Bitcoin
Salman Khan, who is the chief financial officer of Marathon Digital, went into more detail about when the buy was made. He said that the recent drop in the price of Bitcoin was a good time to improve the company’s crypto balance sheet. “The recent dip in Bitcoin’s price gave us a perfect opportunity to add to our holdings,” Khan said.
“Adopting a full HODL strategy reflects our confidence in the long-term value of Bitcoin.”
Fred Thiel, Marathon Digital CEO
Nasdaq data shows that Marathon Digital’s stock (MARA) fell 2.4% in pre-market trading, even though the company had made an important purchase. The way stocks are moving shows that people in the market are being careful, which could be because the cryptocurrency market is so volatile in general.
Marathon Digital wants to double its mining power by 2024, and this buy fits with that goal. The company wants to reach a hash rate of 50 exahashes per second (EH/s), which is a significant increase from where it is now. Recently, Marathon’s operations hit a hash rate of 24.7 EH/s, which was faster than Core Scientific and Riot Platforms. If Marathon hits its goal of 50 EH/s, its hash rate will have more than doubled since the start of 2024. This will make it even stronger as a major player in the Bitcoin mining business.
Marathon Digital is taking a significant step forward with their plan to keep all of their created bitcoin and buy more on the market. By adding to its Bitcoin funds, Marathon not only shows that it believes Bitcoin will continue to be valuable, but it also encourages other businesses and organizations to use Bitcoin as a key part of their financial plans.
