Taking advantage of the recent Bitcoin market crash, Marathon Patent made its investment. The company said that it bought 100,000 miners for the new mining season.
In recent days, the Marathon Patent Group invested a total of USD 150 million in Bitcoin for its reserve fund. This major US Bitcoin mining company took advantage of the recent drop in the price of the crypto asset to make the transaction.
Since Marathon is listed on the Nasdaq Stock Exchange, that acquisition has caused a stir. According to its management, the company could become “a ‘de facto’ investment option” for traditional investors and institutions seeking to get involved with Bitcoin.
They also said that the purchase benefited their investors as they “took advantage of the favorable market conditions” for Bitcoin. When they made the transaction, Bitcoin was trading at USD 31,100 per unit, but the price is currently above USD 33,000.
The New York Digital Investment Group (NYDIG) supported Marathon Patent in making the purchase. The NYDIG has worked on the development and maintenance of Bitcoin financial technology and services. They have even collaborated with other institutional investments in Bitcoin, such as the Stone Ridge case in late 2020.
This would be an “indirect investment” as there is not yet a financial product that allows third parties to have exposure to this asset class. In contrast to funds such as Grayscale and the VanEck ETN, investors will be able to access potential Bitcoin earnings. Other firms, such as MicroStrategy, have taken advantage of this method of investing in the company itself. This company has bought more than USD 2 billion worth of Bitcoin, earning about USD 100 billion since they made the acquisition.
Marathon Grows on the Stock Market as well as in the Mining Sector
Bitcoin mining company Marathon Patent has recently had a good cash flow that seems to have exceeded USD 400 million. They raised that capital primarily from a public offering of their shares earlier this year when they generated about USD 200 million.
Bitcoin mining Company Marathon Patent said that they will expand their mining farm with 103,060 new ASIC miners this year. They have already made a first multi-million purchase of 70,000 S-19 Antminer devices from Bitmain, one of the most important manufacturers in China.
Marathon’s executives estimate that they will deploy all miners in the first quarter of 2022, hoping to produce between 55 and 60 BTC daily. However, the CEO of the company, Merrick Okamoto, said that they will not reach the level of hash rate that they had predicted. He added that the company will take the opportunity to continue expanding through its investments in Bitcoin.
Marathon is part of a series of mining farms in North America that is increasingly gaining prominence in the sector. A new wave of miners has arrived on this continent, decentralizing the Bitcoin hash rate mainly concentrated in China. Other cryptocurrency mining farms such as Core Scientific, Bitfarms and Hut8 have also contributed to the growth of the US mining market.
By Alexander Salazar