Nasdaq-listed Marathon Patent Group announced Monday that it acquired 4,813 bitcoins (BTC) for $150 million through an over-the-counter transaction, paying an average price of approximately $31,135 per bitcoin. The firm joins a growing list of publicly traded companies holding bitcoin as a treasury reserve asset.
Strategic Shift to Bitcoin Reserve
Merrick Okamoto, chairman and CEO of Marathon, stated: “We believe holding part of our treasury reserves in bitcoin will be a better long-term strategy than holding U.S. dollars, similar to other forward-thinking companies like MicroStrategy.” He added, “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 seeking exposure to this new asset class.”
The transaction was executed by crypto financial services firm New York Digital Investment Group (NYDIG) and completed on Jan. 21. The purchase was funded from Marathon's internal cash reserves totaling $425 million, not from the $250 million equity raise completed earlier in January.
Buying the Dip Amid Price Volatility
Bitcoin prices dipped below $30,000 last week before rebounding to the $32,000–$34,000 range. At press time, BTC was trading around $32,000. Marathon took advantage of the pullback, reflecting confidence in the cryptocurrency's long-term value.
Mining Expansion Plans
As a miner, Marathon currently produces about two bitcoins per day but aims to significantly boost capacity. The company has ordered 103,000 advanced S19 bitcoin miners from Bitmain, with delivery and full installation expected by the end of the first quarter of 2022. Okamoto noted: “If all miners were operational today, based on the current network difficulty, we would produce approximately 55 to 60 bitcoins per day. By leveraging our cash on hand to invest in bitcoin now, we have transformed our potential to be a pure-play investment into a reality.”
In October, Marathon announced a joint venture with Beowulf Energy to reduce mining electricity costs by 38%. Marathon shares fell 0.44% to $18.22 on Monday, but are up more than 56% since the start of the year.