- With this $100 million purchase, the bitcoin miner MARA now has over 20,000 BTC in its balance sheet holdings.
- MARA added that it plans to take a complete “HODL” stance when it comes to its bitcoin treasury policy, holding onto all of the mined cryptocurrency and occasionally making more acquisitions.
The bitcoin miner MARA, which changed its name from Marathon Digital recently, said on Thursday that it had added $100 million to its bitcoin holdings. According to a statement shared with The Block, the acquisition increases MARA’s balance sheet holding to more than 20,000 BTC +4.54% ($1.3 billion), or around 0.1% of the whole 21 million bitcoin supply.
MARA CFO Salman Khan told The Block that the company was merely strategically taking advantage of good market conditions to opportunistically purchase bitcoin in the market. The bitcoin miner did not disclose detailed specifics on when the purchases were made or at what average price.
But according to Bitcoin Treasuries, based on the amount in dollars and the company’s balance sheet holdings of 18,536 BTC as of the end of June, the most recent acquisitions are probably worth about 1,500 BTC, purchased this month in the $54,000 to $68,000 area.
MARA has already purchased bitcoin outside of its mining operations; in January 2021, it paid $150 million for the cryptocurrency. But according to Khan, the great bulk of the bitcoin shown on our balance sheet came from our mining activities.
The whole ‘HODL’ approach of MARA
Furthermore, MARA declared that it would take a complete “HODL” stance when it came to its bitcoin treasury policy, holding onto all of the bitcoin that was mined for its own use and making sporadic, selective acquisitions.
According to MARA chairman and CEO Fred Thiel, “adopting a full HODL strategy reflects our confidence in the long-term value of bitcoin.” We endorse the notion that sovereign wealth funds hold bitcoin because we think it’s the best treasury reserve asset available. We support the holding of bitcoin as a reserve asset by businesses and governments alike.
In 2024, MARA’s share of its production of bitcoin was just 31%, down from 56% in 2023, as per a report released on Wednesday by experts at Bernstein Research and Brokerage.
According to Khan, the business used to own all of its bitcoin until last year. We are once again putting this plan into practice and concentrating on increasing the amount we retain on our balance sheet, given the current tailwinds for Bitcoin, which include growing institutional support and an improved macro climate. Because of the recent fall in Bitcoin’s price and the soundness of our balance sheet, we were able to increase our holdings.
According to Khan, The Block, MARA would use the cash on hand on its balance sheet and in the capital markets to fund operations going ahead as part of the revised plan.
In order to diversify its revenue sources following the halving of Bitcoin, MARA stated last month that it had also entered the altcoin mining space. It plans to install its first Kaspa application-specific integrated circuit (ASIC) miners in September 2023.
Disclaimer : This article was created for informational purposes only and should not be taken as investment advice. An asset’s past performance does not predict its future returns. Before making an investment, please conduct your own research, as digital assets like cryptocurrencies are highly risky and volatile financial instruments.
