North American crypto mining giant, Marathon Patent Group announces the acquisition of 4812 BTC for $150 million. The company aligns with MicroStrategy’s strategy and is betting on Bitcoin as a long-term investment.
MicroStrategy is investing heavily in Bitcoin, citing the declining value of the dollar. In order to gain exposure to the cryptocurrencies, investors have acquired bonds in the company.
MicroStrategy’s valuation in Bitcoin also plays a role in determining the value of the company itself. And Marathon Patent Group intends to align itself with this strategy in order to attract investor interest.
Cryptocurrency mining specialist announces a $150 million investment in Bitcoin. The company is therefore drawing on its cash position to acquire 4812.66 BTC. The transaction was carried out through NYDIG.
Marathon believes that such an investment decision will contribute to its stock market value. Indeed, the crypto player presents itself as “one of the only investment options” of the Nasdaq allowing individuals and institutions to gain exposure to Bitcoin.
“We also believe that holding a portion of our cash reserves in Bitcoin will be a better long-term strategy than holding U.S. dollars, like other forward-thinking companies such as MicroStrategy,” said CEO Merrick Okamoto.
Could indirect exposure to Bitcoin through the acquisition of shares of companies holding BTC be a common option for investors in the future? It is too early to say. It seems to have worked for Microstrategy however, and Marathon will hope to enjoy the same fate.
Recently, crypto-miners have been falling heavily on the stock market, following Bitcoin’s steep decline trajectory. For the company, it is a question of multiplying the options but also to reassure on the durability of cryptocurrencies.
At the end of 2020, Marathon Patent Group placed a record order for new mining equipment. Management recalls that it will have 103,060 additional miners in service by the end of the first quarter of 2022.
“If all the miners were operational today, based on the current difficulty rate of the Bitcoin network, we would produce approximately 55-60 Bitcoins per day,” the Nasdaq-listed group said.
Thus, “by taking advantage of our liquidity to invest in Bitcoin now, we have turned our pure investment potential into reality,” insists Merrick Okamoto.