Key Points
- Marathon Digital has purchased an additional $100 million in Bitcoin as part of a new HODL strategy.
- Despite high mining costs, the company plans to retain all mined BTC and continue purchasing more from open markets.
Bitcoin miner Marathon Digital has recently acquired $100 million worth of Bitcoin as part of a new strategy. The firm’s CEO, Fred Thiel, announced that this purchase was made over the last month to enhance their treasury strategy.
Marathon Digital’s New Approach
The company has adopted a full HODL approach, meaning it will retain all mined Bitcoin and strategically accumulate more from open markets. This decision underscores the long-term value of the digital asset.
A Bernstein report highlighted Marathon Digital’s accumulation spree and HODL approach. The report showed a decline in the percentage of Bitcoin sold by the company from 56% in 2023 to 31% in 2024.
Encouraging Others to HODL
Thiel is urging others to adopt their approach and include Bitcoin as a strategic treasury reserve. He believes Bitcoin is the world’s best treasury reserve asset and supports the idea of sovereign wealth funds holding it.
However, the average mining costs remain significantly higher than the current value of the cryptocurrency. As of now, the average mining cost is $70K, while Bitcoin’s current value is $65K. This disparity poses profitability issues, particularly for small-scale private firms.
According to Bitcoin analyst Willy Woo, the end of the miner capitulation could lead to a rally in Bitcoin miner stocks, including Marathon Digital.
