Marathon Digital Resumes Bitcoin “Full HODL” Strategy
Such an initiative is a testament to the strength of the company and the confidence of its management in the future of the cryptocurrency market.
In a surprise news for the crypto sector, the mining company, Marathon Digital, announced the injection of $100 million in the purchase of BTC. The company claims to resume its strategy of total bitcoin ownership.
This means that the company will store all mined coins in its operations. In addition, it is going to allocate a part of its resources to the purchase of more coins. This announcement opens a remarkably positive window. It is an indication of the interest in the establishment of bitcoin as a standard for the reserves of several companies.
The enterprise software company MicroStrategy is the main exponent of this strategy. Now, the US digital mining giant takes this important step that strengthens its commitment to the bullish future of the largest cryptocurrency.
The recurring purchases of BTCs by the company will begin with immediate effect, as they explained in a statement that was published on Thursday. It is worth noting that this move clears up the doubts that were hanging over the Company a few days ago, when it became known that it was fined $139 million.
Marathon, the World’s Largest BTC Miner, Buys USD 100 Million in BTC
Marathon plans to go “full hodl,” which is crypto slang for “hold on for dear life,” Fred Thiel, CEO and president of Marathon Digital, announced in a July 25 post on X:
“Today Marathon is proud to announce that to strengthen our strategy of holding #Bitcoin as our strategic treasury reserve asset, we have over the past month purchased $100 million in BTC, and will now go full HODL @saylor.”
The Bitcoin selling patterns of large holders such as mining companies can have a significant impact on the Bitcoin price, especially since the halving of Bitcoin 2024, which may still force miners to sell more BTC due to halving block rewards.
Marathon’s Total Bitcoin Holding Reflects Confidence in BTC
Marathon Company claims to be focusing on the future with its bitcoin total holding strategy. Basically, the results of this strategy will allow it to have a solid financial capacity. Moreover, the board reiterates its full confidence that the largest cryptocurrency’s price will continue to rise in the long term.
“We believe that bitcoin is the best financial reserve asset in the world,” commented the company’s CEO, Fred Thiel. Companies and governments should adopt this strategy before it is too late for them, he said.
The company’s CFO, Salman Khan, assures that the decision to return to reserving all BTC mined is due to several factors. Among them, he points to the growing support for bitcoin from the institutional investor community. The current and upcoming macroeconomic environment is consistent with a spring in the cryptocurrency sector, he adds.
He goes on to add that the recent pullback in the price of bitcoin, coupled with Marathon’s strong balance sheet, is an opportunity that they cannot afford to miss. As noted, the company’s positive stance puts to rest the doubts recently raised by the $139 million fine.
Currently, MARA shares are up +1.20% and are rapidly approaching $21 per share.
Bitcoin Price Struggles to Stay Above USD 64,000
Despite Marathon’s recent acquisition, the price of Bitcoin is struggling to stay above the psychological USD 64,000 mark.
Bitcoin fell more than 3.6% in the 24 hours to 1:17 p.m. UTC, to trade at USD 64,093. BTC is up more than 4.6% on the monthly chart, according to Bitstamp data.
By Audy Castaneda