MARA Buys $100 Million in Bitcoin, Holdings Surpass 20,000 BTC
Introduction
Bitcoin miner MARA, also known as Marathon Digital, has made a significant move by purchasing $100 million worth of bitcoin. This big purchase takes MARA’s total bitcoin holdings to over 20,000 BTC. MARA plans to adopt a full “HODL” strategy, meaning they will keep all the bitcoin they mine and will continue to make additional purchases when the time is right.
MARA’s Big Bitcoin Purchase
MARA recently announced that it has bought an extra $100 million worth of bitcoin. This acquisition brings their total bitcoin holdings on the balance sheet to more than 20,000 BTC, which is valued at about $1.3 billion. This amount represents nearly 0.1% of bitcoin’s total supply of 21 million.
MARA didn’t provide specific details on when they made these purchases or the average price per bitcoin. However, Salman Khan, MARA’s CFO, mentioned that they took advantage of favorable market conditions to make these strategic purchases. Based on the dollar amount and their holdings of 18,536 BTC at the end of June, it is likely that the latest acquisitions are around 1,500 BTC, bought in the $54,000 to $68,000 price range.
Previous Bitcoin Purchases
This isn’t the first time MARA has bought bitcoin outside of its mining production. In January 2021, MARA purchased $150 million worth of bitcoin. According to Salman Khan, the majority of the bitcoin on MARA’s balance sheet has come from their mining operations.
MARA’s Full HODL Strategy
MARA has decided to fully adopt a “HODL” strategy for its bitcoin treasury policy. This means they will keep all the bitcoin they mine and make additional strategic purchases periodically. Fred Thiel, MARA’s chairman and CEO, stated that this strategy shows their confidence in the long-term value of bitcoin. He believes that bitcoin is the best treasury reserve asset in the world and supports the idea of governments and corporations holding bitcoin as a reserve asset.
Reducing Bitcoin Sales
In 2023, MARA reduced the percentage of bitcoin sold from their production from 56% to 31% in 2024. This change was highlighted in a report by Bernstein, a research and brokerage firm. Before last year, MARA used to keep all their bitcoin. Given the current positive trends for bitcoin, including increased institutional support and a better macro environment, MARA is once again focusing on growing the amount of bitcoin they hold on their balance sheet.
Leveraging Balance Sheet and Capital Markets
Following their renewed strategy, MARA plans to use the existing cash on their balance sheet and capital markets to fund their operations. This means they are leveraging their financial strength to support their HODL strategy and further investments in bitcoin.
Expanding into Altcoin Mining
Last month, MARA announced that they are expanding into altcoin mining to diversify their revenue streams, especially after the Bitcoin halving. They have started using Kaspa application-specific integrated circuit (ASIC) miners since September 2023. This move is part of their strategy to grow beyond bitcoin and tap into the potential of other cryptocurrencies.
MARA’s Confidence in Bitcoin
MARA’s recent actions reflect their strong belief in the future of bitcoin. They see bitcoin as a crucial asset and are committed to holding and growing their bitcoin reserves. By adopting a full HODL strategy, reducing the percentage of bitcoin sold, and expanding into altcoin mining, MARA is positioning itself for long-term success in the cryptocurrency market.
Encouraging Others to Hold Bitcoin
Fred Thiel encourages other entities, including governments and corporations, to hold bitcoin as a reserve asset. He believes that bitcoin’s long-term value makes it an ideal choice for treasury reserves. MARA’s strategy and actions serve as a model for other companies considering similar moves.
MARA’s Strategic Bitcoin Acquisitions
MARA’s strategy involves making strategic bitcoin purchases during favorable market conditions. This approach allows them to maximize their bitcoin holdings and take advantage of lower prices. Their recent $100 million purchase is a testament to this strategy and their commitment to growing their bitcoin reserves.
Impact of Bitcoin’s Price Decline
Bitcoin’s recent price decline has provided an opportunity for MARA to increase their holdings. The strength of their balance sheet has enabled them to make significant purchases even during market downturns. This ability to buy low and hold for the long term is a key part of their HODL strategy.
Conclusion
MARA’s recent $100 million bitcoin purchase and their full HODL strategy demonstrate their strong belief in the future of bitcoin. By holding and strategically acquiring bitcoin, reducing sales, and expanding into altcoin mining, MARA is positioning itself as a leader in the cryptocurrency market. Their actions and strategy serve as a model for others, highlighting the potential of bitcoin as a treasury reserve asset.
