Marathon Digital snags more BTC after shift to ‘full HODL approach’
The post Marathon Digital snags more BTC after shift to ‘full HODL approach’ appeared on BitcoinEthereumNews.com.
Marathon Digital wasted no time buying more bitcoin after revealing last month it would adopt a “full HODL approach.” The bitcoin miner purchased 4,144 BTC between Aug. 12 and Aug. 14 for $249 million, at an average cost of $59,500 per bitcoin according to the company. The bitcoin purchase came the same week Marathon closed its offering of 2.125% convertible senior notes due in 2031. The sold notes’ aggregate principal amount was $300 million. Prior to the most recent purchase, Marathon bought $100 million worth of the asset a few weeks ago. The company noted in a press release at the time it would retain all bitcoin that it mines and would “periodically make strategic open market purchases.” “We believe bitcoin is the world’s best treasury reserve asset and support the idea of sovereign wealth funds holding it,” CEO Fred Thiel said in a July statement. “We encourage governments and corporations to all hold bitcoin as a reserve asset.” Compass Point Research & Trading analyst Joe Flynn called Marathon “a levered play on BTC,” in an Aug. 2 research note — similar to MicroStrategy. He kept his buy rating of the stock but cut MARA’s price target from $27 to $21, noting the company is currently mining BTC at a loss. Read more: Where bitcoin miners stand after Q2 disclosures MARA shares closed Wednesday at $15.14. The stock is down 34% from a month ago but was up about 3% in early morning trading. Marathon reported having 20,818 unrestricted BTC, as of July 31. That would bring its total bitcoin holdings to roughly 25,000 BTC after this week’s purchase. That BTC holdings level is second only to MicroStrategy in the corporate arena. The Michael Saylor-led business intelligence company has nearly 10 times more bitcoin than Marathon — paying $8.35 billion…
Filed under: News - @ August 15, 2024 3:24 pm