TL;DR
- Marathon Digital has acquired $100 million in Bitcoin, raising its balance to over 20,000 BTC, and has announced that it will adopt a full HODL strategy.
- The company’s CEO, Fred Thiel, urged governments and corporations to consider BTC as a fundamental part of their asset reserves.
- The decision to resume the accumulation strategy comes after a period when the company sold its digital assets to cover operating expenses.
Marathon Digital, one of the leading Bitcoin mining companies, has acquired $100 million in Bitcoin, bringing its balance to over 20,000 BTC. The company has announced that it will adopt a full HODL strategy, which involves retaining all mined coins and making occasional strategic purchases. The strategic shift marks a return to the accumulation policy the company had previously abandoned.
Fred Thiel, Chairman and CEO of Marathon Digital, reaffirmed the company’s strong confidence in Bitcoin as a key reserve asset, stating that the decision to hold all reserves underscores its belief in the long-term value of the cryptocurrency. Thiel also urged governments and corporations to consider BTC as a fundamental part of their asset reserves.
Today, we are announcing that MARA has purchased $100,000,000 worth of BTC. And effective immediately, we are once again adopting a full HODL strategy. Learn more about our #Bitcoin Strategic Reserve: pic.twitter.com/pYxiclOtQa
— MARA (@MarathonDH) July 25, 2024
The company’s CFO, Salman Khan, noted that the recent drop in Bitcoin’s price, combined with the company’s strong financial position, presented a favorable opportunity to increase its holdings.
Marathon Digital Resumes Its Accumulation Strategy
The decision was made almost a year after Marathon began selling its digital assets to cover operating expenses, a strategy it implemented during the 2023 bear market. However, with the recent recovery in BTC prices, which have exceeded $64,000, the firm has decided to resume the HODL strategy to capitalize on current market conditions.
The strategic shift comes after the BTC market recovered, reaching up to $68,000, although it was later hit by volatility, falling 3.9% on the last day and currently trading at $64,200. Bitcoin has had strong annual performance, partly due to the approval of BTC-backed exchange-traded funds (ETFs) in the U.S., which has attracted new investors and helped the digital asset reach new all-time highs.
Marathon will report its second-quarter earnings on August 1, having $268 million in cash at the end of June. Despite the recent rally, the company’s stock and the price of BTC have experienced slight declines in recent days.
Marathon Digital has reaffirmed its commitment to Bitcoin and its long-term accumulation strategy. Only time will tell what benefits or consequences the return of the strategy will bring.
