Marathon Digital (MARA) Acquires 400 BTC Following Market Downturn

• Marathon Digital bought 400 BTC worth $46M during last week’s market selloff.

• The purchase raised its total holdings to 52,850 BTC, valued at around $6.1 billion.

Bitcoin mining giant Marathon Digital Holdings took the chance in the market selloff last week to increase its cryptocurrency holdings by a large margin. The publicly traded company bought 400 bitcoin at a value of about $46 million when the price was falling, and this indicates that the company is confident in the market despite the uncertainty and volatility that is prevalent in the market. Arkham Intelligence on-chain tracking data verified that the transaction took place on FalconX, one of the largest institutional crypto prime brokerages serving large investors.

Strategic Accumulation Amid Market Turbulence

The most recent purchase by Marathon has taken the total bitcoin holdings of the company to about 52,850 BTC, worth about $6.1 billion at present market rates. The acquisition took place on Monday morning after the dramatic price fall on Friday, which saw the bitcoin fall almost 13% in just one trading hour. The turmoil in the market occurred due to the increasing trade tensions between the United States and China, which caused a general risk-off in the global financial market.

The bitcoin mining firm seems to be playing an old game of hoarding digital currencies in times of price adjustments and declines in the market. Marathon carried out the deal with its custodian Anchorage Digital and FalconX, which are favoured by institutional investors in need of a safe cryptocurrency trading infrastructure. 

The on-chain movement was first identified by blockchain analyst Lookonchain, who posted his findings on social media, pointing out that Marathon was using an aggressive accumulation strategy in the face of volatility.

The mining company is in the process of expanding its operations as it develops reserves, as it has already produced 218 blocks in the month of September, with a monthly growth of 5%. The global hashrate increased 9% in the month-over-month to an average of 1,031 exahashes per second. 

Bitcoin is now trading at an average of $114,800 with a 3% increase in 24 hours, although it has partially recovered following the crash on Friday. Nevertheless, analysts caution that the inability to move above long-term resistance levels may drive the prices to the psychological support zone of $100,000. Marathon did not comment on the transaction, but on-chain records are highly persuasive that the purchase was made as the market situation worsened.

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