Mining company Marathon Patent Group on Monday, January 25, announced the acquisition of 4,813 bitcoins worth $150 million.
Marathon CEO Merrick Okamoto said in a commentary for The Block that the investment was part of the company’s reserve allocation strategy. Marathon was also the first mining company to buy BTC on the market.
„We believe that holding part of our reserves in bitcoin is a better Golden Profit long-term strategy compared to holding in US dollars. Other companies such as MicroStrategy have made similar far-sighted decisions,“ Okamoto said.
Marathon shares on the Nasdaq rose 892% last year, while MicroStrategy shares rose 166%.
Marathon raised $250 million this month. Asked by The Block whether the funds were used to buy bitcoins, Okamoto said the company had $425 million before raising the funds, some of which was used to buy BTC.
Crypto-asset management company New York Digital Investments Group (NYDIG) helped Marathon acquire bitcoins. According to a statement from NYDIG, the purchase was completed on 21 January at around $31,135 per bitcoin. Marathon’s order was fulfilled „in just a few hours“, NYDIG said.
Last month, NYDIG also helped insurance giant MassMutual invest $100 million in bitcoin.
Marathon Patent Group has been mining bitcoin since late 2017. According to Okamoto, the company now has around 2,560 ASIC miners under management, mining between 1.5 and 2 bitcoins a day.
To expand its operations, Marathon recently ordered 70,000 Antminer S19s from Bitmain for $170 million. „These devices will be shipped early this week,“ Okamoto said. „Once all the miners are installed, the company’s total hash rate will exceed 10.34 exahesh, which we believe could make Marathon the largest bitcoin miner in the world.“