This was first cryptocurrency investment made by Marathon. The company’s shares have risen by 1,789% over the past six months.
The holding company Marathon Patent Group acquired 4,813 BTC for a total value of about $ 150 million. Executive Chairman and Chief Executive Officer. Mr. Merrick D. Okamoto explained to The Block that the investment was part of a plan to diversify its cash reserves.
Marathon Patent Group entered the cryptocurrency market in January 2018 when it acquired the mining company Global Bit Ventures Inc. (GBV). In August 2020, Marathon signed a contract for the purchase of 10.5 thousand Antminer S-19 miners from Bitmain, in December another agreement was signed for the purchase of 70 thousand miners. The company, which itself is engaged in bitcoin mining, is investing money in cryptocurrency for the first time.
Okamoto stressed that keeping some of the reserves in bitcoin, as “other forward-thinking companies like MicroStrategy” have done, is “the best long-term strategy.”
Marathon is listed on the NASDAQ stock exchange. Amid the bitcoin rally over the past six months, the company’s stock has surged 1,789%.
Earlier in January, the company raised $ 250 million through a direct public offering. Even before the funding was raised, Okamoto said the company had $ 425 million in cash, which it eventually used to buy cryptocurrency.
The transaction was helped by digital asset management company NYDIG. The deal was closed on January 21 at a Bitcoin price of $ 31,135. At the press-time, the asset is trading at $ 34,483.
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