Marathon Digital Buys Additional $100 Million in Bitcoin

Marathon Digital, a leading BTC miner, invests $100M in BTC & announces plans to hold all mined Bitcoin on balance sheet, reaffirming commitment to digital asset strategy. #Bitcoin #MARA #Investment #CryptoNews

• Marathon Digital buys $100M in BTC
• Bitcoin still up 51% this year

Marathon Digital buys $100M in BTC

“Leveraging the recent dip in Bitcoin prices and the robustness of our balance sheet, we seized the opportunity to bolster our portfolio,” stated Salman Khan, Marathon’s Chief Financial Officer. “Our technological prowess will continue to empower Bitcoin and the broader distributed digital asset landscape.”

This shift towards a full HODL (Hold On for Dear Life) strategy marks a significant turnaround from Marathon’s previous approach of selling mined digital assets to fund operational costs. Prior to the crypto winter, miners widely adopted a hold strategy, which proved lucrative during the bull market. However, as the market suffered a major setback in 2022, many miners resorted to selling their holdings to sustain operations, with Marathon being among the last to monetize its digital assets in early 2023.

“Our decision to fully embrace the HODL strategy underscores our unwavering faith in Bitcoin’s long-term potential,” affirmed Fred Thiel, Marathon’s Chairman and CEO. “We view Bitcoin as the premier global treasury reserve asset, advocating for sovereign wealth funds and other entities to adopt it as a strategic reserve.”

Bitcoin still up 51% this year

After the prolonged bear market, bitcoin started to recoup its losses this year after the likes of BlackRock got approval to offer spot BTC exchange traded-funds (ETFs) in the U.S. This move brought more investors into the market and helped the digital asset reach a new all-time-high price. Bitcoin has come off its peak of over $70,000 since then and now trading around $64,000 – still up 51% this year.

With institutional support growing stronger and the macroeconomic environment improving, companies like Marathon are re-evaluating their strategies and increasing their Bitcoin holdings on their balance sheets. Marathon’s CFO has recently reiterated their commitment to this approach, highlighting the potential for long-term growth and the strategic importance of Bitcoin in their portfolio.

Despite short-term fluctuations in the market, the underlying fundamentals remain strong, as evidenced by Bitcoin’s resilience and continued upward trajectory. Despite a modest decline in recent days, the broader CoinDesk20 Index has also experienced a temporary setback, yet Bitcoin’s performance this year underscores its potential as a valuable investment opportunity.