MARA Bitcoin Miner Buys Additional $100 Million Worth of BTC – What Does This Mean for Investors?
Bitcoin miner MARA, formerly known as Marathon Digital, made headlines as it announced the purchase of an additional $100 million worth of bitcoin. This move caused the company’s shares to drop more than 2% in premarket trading. With this acquisition, MARA now holds over 20,000 BTC, representing nearly 0.1% of bitcoin’s total supply.
Although MARA did not disclose the specific timing or average price of the purchases, it is estimated that they bought around 1,500 BTC in the $54,000 to $68,000 range this month. The company also revealed that it will be adopting a full HODL approach to its bitcoin treasury policy, meaning they will keep all mined bitcoin and make strategic open market purchases periodically.
MARA’s chairman and CEO, Fred Thiel, expressed confidence in bitcoin’s long-term value, stating that it is the world’s best treasury reserve asset. He even encouraged governments and corporations to hold bitcoin as a reserve asset. This strategy aligns with MicroStrategy, the world’s largest publicly-listed BTC holder, led by Michael Saylor.
MicroStrategy holds bitcoin as its primary treasury reserve asset and continuously buys more, accumulating over 226,000 coins as of June 2024. This trend indicates a growing acceptance of bitcoin as a valuable asset by corporations and institutions.
In summary, MARA’s latest move to increase its bitcoin holdings reflects a broader trend in the market towards adopting bitcoin as a treasury reserve asset. This can have implications for investors as it signals growing institutional interest in bitcoin, potentially driving up its value in the long run. It’s essential for investors to monitor these developments and consider incorporating bitcoin into their investment portfolios for potential long-term gains.