Bitcoin miner MARA, formerly known as Marathon Digital (NASDAQ), announced on Thursday its purchase of an additional $100 million in Bitcoin. The company’s stock experienced a decline of more than 2% in premarket trading following the announcement.
This recent acquisition raises MARA’s total Bitcoin holdings to over 20,000 BTC, accounting for nearly 0.1% of Bitcoin’s capped supply of 21 million. The company did not specify the exact timing or average price of the new acquisitions. However, with previous holdings of 18,536 BTC reported by Bitcoin Treasuries at the end of June, it is estimated that MARA’s latest purchase involved approximately 1,500 BTC, acquired within the $54,000 to $68,000 price range this month.
MARA has also announced a shift to a full HODL strategy for its Bitcoin treasury, which entails retaining all mined Bitcoin and making periodic strategic purchases in the open market. This new policy is effective immediately.
Fred Thiel, MARA’s chairman and CEO, commented on the decision: “Adopting a full HODL strategy reflects our confidence in the long-term value of Bitcoin. We believe Bitcoin is the world’s best treasury reserve asset and advocate for its adoption by sovereign wealth funds, governments, and corporations as a reserve asset.”
MARA’s strategy aligns closely with that of MicroStrategy (MSTR), the largest publicly listed Bitcoin holder. MicroStrategy, founded by Bitcoin advocate Michael Saylor, continues to accumulate Bitcoin as its primary treasury reserve asset, holding 226,331 BTC as of June 24, 2024.
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