Marathon Patent Group announced its first purchase of Bitcoin, adding $150 million in cryptomoeda to its reserve fund.
Nasdaq-listed Bitcoin mining company first purchases $150 million in BTC for reserve fundNOTHIES
Bitcoin mining company (BTC) Marathon Patent Group, listed on the U.S. Nasdaq exchange, announced the purchase of $150 million in Bitcoin, according to the company’s announcement.
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Marathon CEO Merrick Okamoto told The Block that the purchase was made through the mining company’s cash reserves as a way of spreading its treasury fund, totaling 4,813 BTC, in the company’s first purchase of cryptomeda.
Marathon has been active in the Bitcoin mining market since 2017, with 2,560 BTC miners in production, producing between 1.5 and 2 BTC per day.
It recently sold US$200 million in shares and ordered 100,000 units of Bitmain S19 miners, which will increase production capacity to between 55 and 60 BTC per day.
Okamoto spoke about the new million-dollar acquisition:
„We have used our available money to invest in Bitcoin now, we have turned our potential to be a pure investment into a reality. We also believe that maintaining part of our treasury reserves in Bitcoin will be a better long-term strategy than maintaining US dollars, similar to other forward-looking companies like MicroStrategy“.
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Earlier this month, Marathon raised $250 million in a round of equity, but the mining company’s CEO denies that the funding was used to buy Bitcoin.
According to him, the company already owned $425 million before the round, and it was those funds that were used for the current purchase, which was executed by the financial services company in cryptomoedas NYDIG.
The purchase was made on January 21, when the price of Bitcoin was $31,135. On Wednesday, the largest cryptomoeda is traded for over $34,000.
According to the NYDIG, the transaction was made in „just a few hours,“ from the idea to the execution of the purchase. Last month, the company also helped MassMutual, an insurance company, acquire about $100 million in cryptomoeda.
In addition to mining cryptomoeda, Marathon is also active in the acquisition of patent rights and business licensing. The company has a market capitalization of US$1.68 billion, growing 25 percent over the past five years.
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At the beginning of the year, the company’s CEO sold 13 million of his personal shares of the company. When asked if the company could invest again in buying Bitcoin, Okamoto was evasive: „We will see,“ he concluded.