Marathon Digital Expands Bitcoin Holdings with $100 Million Purchase

Marathon Digital (MARA) has made a significant move by purchasing additional bitcoin.

The bitcoin mining company announced on Thursday that it has invested $100 million in the cryptocurrency on the open market. This purchase boosts Marathon's bitcoin holdings to over 20,000, valued at approximately $1.3 billion. The company also revealed its commitment to a "full HODL strategy," opting to retain all the bitcoin it mines.

Salman Khan, Marathon's CFO, highlighted that the recent dip in bitcoin prices, coupled with the company’s robust financial standing, presented an opportune moment to expand their cryptocurrency portfolio. Previously, the company had been selling bitcoin to cover its operating expenses.

As of June 30, Marathon reported having $268 million in cash reserves. The company is scheduled to announce its second-quarter earnings on August 1.

Despite a recent 2% decline in bitcoin prices, bringing it just under $65,000 according to CoinDesk, Marathon’s stock saw a slight increase of about 1%.

Marathon CEO Fred Thiel expressed strong support for bitcoin as a treasury reserve asset, advocating for its adoption by governments and corporations. "We believe bitcoin is the world’s best treasury reserve asset and support the idea of sovereign wealth funds holding it," he said. "We encourage governments and corporations to all hold bitcoin as a reserve asset."