Marathon Digital Holdings has made a bold move in the cryptocurrency market by acquiring an additional $249 million worth of Bitcoin, pushing its total reserves to over 25,000 BTC. This substantial purchase of 4,144 Bitcoin was funded through part of the proceeds from a recent $300 million senior note offering, marking a significant step in the company’s strategic expansion.
The latest acquisition aligns with Marathon’s recently adopted “hodl strategy,” a term popularized in the crypto community as a playful misspelling of “hold,” which was confirmed by CEO Fred Thiel last month. The company disclosed that the Bitcoin was purchased at an average price of approximately $59,500.
A Marathon spokesperson reiterated the company's belief in Bitcoin as the “premier strategic treasury asset,” stating that they are “adopting a multifaceted strategy for acquiring Bitcoin.” This follows a previous purchase in July of 2,282 BTC, valued at $124 million, further solidifying their long-term commitment to the cryptocurrency.
Marathon’s financial performance, however, has faced challenges. The company’s shares closed down 2.26% at $15.14, with a slight additional drop in after-hours trading. The second-quarter earnings report missed Wall Street estimates, with revenues falling 9% short at $145.1 million. Despite this, the company saw a 78% year-over-year revenue increase from Q2 2023.
The recent downturn in mining profitability, exacerbated by the Bitcoin halving, has further strained the industry. Miner hashprice, a key indicator of mining profitability, hit a record low earlier this month. This has posed challenges for large public miners like Marathon, which had the highest all-in mining costs in the previous month, making it increasingly difficult to maintain profitability in the current environment.
