Marathon Digital’s Bitcoin Reserves Hit 25,000 With Full HODL Strategy

Marathon Digital, a leading Bitcoin mining company, has purchased an additional 4,144 Bitcoin (BTC), valued at around $249 million, bringing its total BTC reserves to over 25,000 BTC.

The company has reinstated their ‘full HODL’ strategy.

The company said it used funds from a recent $300 million senior note offering for the new acquisition. The remaining will be used to fund more Bitcoin purchases, said Marathon Digital.

Back To HODL!

The announcement came shortly after the miner purchased $100 million in Bitcoin last month, boosting its total holdings to over 20,000 BTC. Earlier this week, Marathon revealed plans for a $250 million private note sale to fund additional Bitcoin acquisitions and other corporate needs, with the notes maturing in 2031.

The recent Bitcoin purchases are part of Marathon’s “full HODL” strategy. The company said it would retain all the Bitcoin it mines and make strategic open market purchases to grow its Bitcoin holdings on its balance sheet.

Marathon previously adopted the strategy but had to drop it and sold its mined Bitcoin to cover operating expenses, especially during the 2022-2023 crypto winter. According to the firm, increasing institutional support and an improving macro environment have turned headwinds into tailwinds for Bitcoin.

“Adopting a full HODL strategy reflects our confidence in the long-term value of Bitcoin. We believe Bitcoin is the world’s best treasury reserve asset and support the idea of sovereign wealth funds holding it,” said Marathon CEO Fred Thiel.

Thiel also stated that the company sees a long-term potential of Bitcoin as a reserve asset. It plans to continue to use its technological expertise to support Bitcoin and the digital asset ecosystem.

In addition to the “full HODL” strategy, Marathon Digital will stamp a “Made in USA” label on all Bitcoin blocks mined in the US by their MARA Pool.

A Common Tactic

Adopting Bitcoin as a reserve asset has become a common tactic among companies in recent months. MicroStrategy tops the list as the largest corporate holder of BTC with steady purchases.

MicroStrategy is planning to sell up to $2 billion in class A shares to invest in Bitcoin and for other corporate uses. The company recently acquired 12,222 Bitcoin for $805 million, increasing its total holdings to 226,500 BTC.

The crypto market faces headwinds from US government Bitcoin sales and weak economic data, pushing Bitcoin below $61,000. Despite market volatility and bearish sentiment, MicroStrategy’s president Phong Le described their Bitcoin strategy as successful. Le noted a 70% surge in the market value of their holdings.

Apart from MicroStrategy, a number of small entities also pursue the holding path.

Japanese public company Metaplanet recently added 500 million yen worth of Bitcoin, equivalent to $3.3 million, to its holdings. The latest purchase came after it secured a $6.8 million loan earlier this month to boost its Bitcoin holdings.

After several acquisitions made over the past few months, Metaplanet now possesses a total of 303.095 BTC acquired for $20 million. The company views Bitcoin as a hedge against yen depreciation and a valuable addition to its treasury.

Metaplanet CEO Simon Gerovich said the firm’s strategic pivot to Bitcoin was an opportunity to transform from a “zombie” company to a thriving enterprise.

Like Metaplanet, Semler Scientific, another firm recently adopting a Bitcoin-focused strategy, also sees Bitcoin as an opportunity for future growth and liquidity. Semler has a strong belief in its potential as a reliable store of value and an inflation hedge amid global economic instability.

The company purchased 101 BTC earlier this month. It now holds 929 BTC, valued at around $63 million. While BTC prices may stay under pressure for a few months, these investments will rise over time.

Both Metaplanet and Semler Scientific have seen their shares surge since their announcement of MicroStrategy-inspired Bitcoin plan, though each stock price has dipped from their peak.