Marathon Digital Holdings (MARA), a global leader in digital assets, has purchased $100 million worth of Bitcoin, according to a recent announcement from Marathon Digital Holdings CEO Fred Thiel. The latest acquisition brings Marathon’s total Bitcoin holdings to 20,000 BTC, valued at around $1.3 billion.
Marathon’s leaders believe in Bitcoin’s long-term potential and adopt a “full HODL” strategy.
Thiel said the company aims to use BTC as a strategic treasury reserve asset, a strategy that has been adopted by a number of major firms like MicroStrategy. He added that Marathon will “go full HODL,” meaning it will not sell its Bitcoin and make periodic open market purchases.
“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,” Thiel said in a statement.
Big Money Backs BTC
According to Marathon CFO Salman Khan, the firm previously adopted a HODL strategy, keeping all its Bitcoin rather than selling it. The company has made periodic Bitcoin sales to support the business’ needs.
Earlier in February and March, Marathon sold over 700 BTC. The sales were part of a strategy to support monthly operations, manage its treasury, and cover general corporate expenses. Now it looks like it is a good time to buy.
With the recent price decline, combined with MARA’s strong financial position, Marathon saw opportunities to purchase more Bitcoin, said Khan. In addition to Bitcoin purchases, MARA also looks to support Bitcoin and the broader digital asset ecosystem through its technological capabilities.
According to Bitcointreasuries.net, MicroStrategy is the world’s largest corporate owner of Bitcoin, with 226,331 BTC, valued at around $15 billion as of July 25. Marathon Digital is the runner-up while Tesla takes third place. Elon Musk’s firm currently holds around $645 million worth of Bitcoin.
A number of Bitcoin mining firms joining the top ten are Riot Platforms, Hut 8, and CleanSpark, data shows.
Despite Marathon’s recent Bitcoin purchase, Bitcoin’s price has been struggling to stay above $64,000. BTC experienced a 3.6% drop in the 24 hours leading up to July 25. At press time, Bitcoin changed hands at around $66,600, up almost 4% in the past 24 hours, CoinGecko’s data shows.
Meanwhile, Marathon’s stock has dipped, along with the wider market. Macro looks ugly at the moment, and assets are under selling pressure.
MicroStrategy’s Bitcoin Strategy as a Catalyst
MicroStrategy’s Bitcoin strategy has inspired global firms to adopt similar approaches, said executives from Metaplanet and Semler Scientific at the Bitcoin Conference in Nashville.
The “Asia’s MicroStrategy” has shifted its focus to accumulating Bitcoin as a primary treasury reserve asset in response to Japan’s economic challenges, including a high debt-to-GDP ratio and the depreciation of the national currency.
Following a series of Bitcoin purchases earlier this year, Metaplanet has increased its holdings to 225.611 BTC. The firm plans to continue BTC accumulation over time.
For Semler Scientific, a healthcare technology company, Bitcoin is a reliable store of value. The firm believes Bitcoin can serve as a hedge against inflation and a safe haven amid global instability. It also considers Bitcoin’s digital architecture more preferable to gold. As of July 25, 2024, Semler Scientific has 828 BTC for approximately $57 million.
The two companies were experiencing financial difficulties, with low stock prices and excess cash, similar to “zombie” companies. Both saw Bitcoin as a strategic investment to improve their financial health and reduce their reliance on depreciating fiat currencies.
“We were hearing Michael Saylor talk about zombie companies, and we realized we were probably one of those companies,” said Semler Scientific’s chairman Eric Semsler at the conference.
Following Bitcoin investments, Metaplanet and Semler Scientific saw remarkable increases in their stock prices.
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