In a recent press release, Marathon Digital (MARA), one of the largest Bitcoin mining firms, announced its recent purchase of $100 million.
Increasing its total bitcoin holdings to over 20,000 bitcoins, currently worth about $1.3 billion, the American mining firm added that it will adopt a full HODL approach towards the mined bitcoins on its balance sheet.
Fred Thiel, MARA’s chairman and CEO said concerning the company’s new resolve, “Adopting a full HODL strategy reflects our confidence in the long-term value of bitcoin.”
He continued, “We believe bitcoin is the world’s best treasury reserve asset and support the idea of sovereign wealth funds holding it. We encourage governments and corporations to hold Bitcoin as a reserve asset.”
Marathon Bullish Outlook on Bitcoin
Marathon Digital had always held onto the HODL strategy until early 2023. For the first time, the mining company liquidated some of its Bitcoin holdings, reducing its reserve to about 11,418 bitcoins.
According to the company, Mara had to sell 1,500 of its bitcoins in January to cover some operating expenses and other general corporate uses, following the footsteps of another mining company.
Riot Platforms, (RIOT), a publicly-traded bitcoin mining company also sold about 200 of its bitcoin in March 2022 at an average price of $47,090 each.
Although Marathon had to liquidate some of its bitcoin holdings to cover operational costs in the past, the company’s new decision to return to its long-term HODL strategy, reveals its resolve not to make such moves again.
MARA’s chief financial officer, Salman Khan, mentioned that the mining company’s strategy to HODL bitcoin is attributed to the increased growth and adoption in the crypto space. He added, “We look forward to continuing to leverage our technological expertise to support Bitcoin and distributed digital asset ecosystems.”
Fred Thiel, Marathon’s CEO, stated in an interview that the approval of the bitcoin spot ETF contributed to the increased bitcoin demand which led to the post-halving rally.
In a similar development, CleanSpark, another bitcoin mining company, also with a bullish outlook revealed its total mining activity in May. CleanSpark mined 417 BTC in May, bringing its total BTC holdings to 6,154.
