One of the leading North American Enterprise Bitcoin mining companies, Marathon, has today announced that it bought 4,812.66 BTC at an aggregate price of $150 million. With this purchase, the Nasdaq-listed Marathon is looking to strengthen its position as the investment option for both institutions and individuals seeking exposure to Bitcoin.
For the effective purchase of this Bitcoin, Marathon announced that it has been working with a successful Bitcoin-focused technology and financial services firm, NYDIG. Capitalizing on the expertise of the NYDIG in trading, execution, and asset management, Marathon bought the afforementioned Bitcoin amount at favorable market conditions, with the transaction having been reported as an efficient one.
De-Facto Bitcoin Exposure Choice For Individuals & Institutions
According to Merrick Okamoto, Marathon’s chairman & CEO:
“By purchasing $150 million worth of Bitcoin, we have accelerated the process of building Marathon into what we believe to be the de facto investment choice for individuals and institutions who are seeking exposure to this new asset class.”
It is understood that Marathon believes that holding a part of their treasury reserves in Bitcoin will prove to be better in the long run compared to holding US dollars, and Marathon has so far made contracts to purchase 103,060 miners. Furthermore, Okamoto believes that by the end of the first quarter of fiscal 2022, all 103,060 miners will be delivered and fully deployed.
To put things into perpspective, based upon the current difficulty rate of Bitcoin’s network, it is estimated that Marathon would have produced approximately 55-60 bitcoins per day if all 103,060 miners were operational today. However, at this current moment in time, it appears that Marathon is leveraging cash to purchase more Bitcoins, and it it seems that the company’s vision of becoming a go-to intermediary is slowly but surely becoming a reality.
n Institutional Choice
According to Robby Gutmann, co-founder, and CEO of NYDIG:
“We deeply admire Marathon’s commitment to the Bitcoin ecosystem, and we are very pleased to add them to the list of companies who utilize NYDIG as the institutional choice for Corporate Treasury Solutions.”
It therefore appears that NYDIG holds a unique position, insofar as the company leverages a unique system to assist corporations to overcome the challenges that they face, whilst also executing and structuring their large holdings of Bitcoins. So when it comes to Marathon’s latest Bitcoin purchase, it appears that NYDIG have fired off on all cylinders to deliver a custom solution, and with a quick turnaround.
Given how this follows of the back of Microstrategy’s monumental Bitcoin event announcement, one can expect to see more institutional interest sprouting up in the coming months.
Disclaimer: This article is provided for informational purposes only. It is not offered or intended to be used as legal, tax, investment, financial, or other advice.
Title: Marathon Patent Group Invests $150 Million in Bitcoin
Sourced From: cryptodaily.co.uk/2021/01/marathon-patent-group-bitcoin-investment
Published Date: Tue, 26 Jan 2021 12:56:45 +0000
Marla Brooks – Financial Analysis
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