The Marathon Patent Group announced on Monday that it had purchased 4,813 bitcoins for a value of $150 million. The company has joined a growing list of listed companies holding Bitcoin.
Marathon Chairman and CEO Merrick Okamoto (Merrick Okamoto) said that Nasdaq is buying Bitcoin (BTC) as a reserve asset.
Okamoto said in a statement: “We believe that, like other visionary companies such as Microdollar, holding part of our treasury reserves will be a better long-term strategy than holding US dollars, similar to holding US dollars.
He added: “By purchasing $150 million worth of Bitcoin, we have accelerated the process of making Marathon a de facto investment choice for individuals and institutions that we believe are seeking such new asset classes.”
The marathon that has participated in BTC mining bought this mining, and the average payment per bitcoin is about $31,135. The transaction was executed by the New York Digital Investment Group (NYDIG), an encrypted financial services company, and was completed on January 21.
The price of Bitcoin plummeted below $30,000 last week, but rebounded to between $32,000 and $34,000. At the time of writing, the trading price of BTC is approximately US$32,000 per unit.
In early January of this year, Marathon raised $250 million in a round of equity financing, but this was not used to buy BTC. Okamoto revealed that the funds for the purchase of Bitcoin came from internal cash resources, totaling $425 million.
As a miner, Marathon currently produces up to two bitcoins per day, but is now seeking to expand its scale by purchasing 103,000 advanced S19 bitcoin miners from Bitmain. Okamoto said that the miner expects to be delivered and fully installed by the end of the first quarter of 2022.
He said: “If all the miners are operating today, depending on the current difficulty of the Bitcoin network, we will produce about 55 to 60 Bitcoins a day.” “But by using our cash on hand to invest in Bitcoin now, we Has turned our potential into a pure investment into a reality.”
In October, Marathon announced that it had reached a joint venture agreement with Beowulf Energy to reduce the cost of electricity to withdraw bitcoin by 38%. On Monday, Marathon shares fell 0.44% to $18.22. Since January 1, the stock has risen more than 56%.
What do you think of Marathon buying Bitcoin for the company’s treasury? Let us know your thoughts on this topic in the comments section below.
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