Marathon Patent Group, a publicly-traded Bitcoin mining company, buys $150 million of coins during a price correction last week.
January 26, 2021 | AtoZ Markets – Marathon Patent Group, a mining company listed on the Nasdaq, has allocated $150 million in reserves for the purchase of the leading cryptocurrency.
Marathon transfers part of its cash reserves to Bitcoin
According to the head of the company, Merrick Okamoto, on January 21, Marathon acquired 4,813 BTC through the manager of cryptocurrency funds New York Digital Investment Group (NYDIG).
The company noted that the deal went through quickly. In December 2020, NYDIG also helped Mass Mutual buy $100 million worth of bitcoins.
By adding Bitcoin to its reserves, Marathon has become one of the few NASDAQ-listed companies with a digital asset presence. Marathon shares are up nearly 900% last year.
For the first time in history, a bitcoin mining company bought these coins on the open market to replenish its reserves. Marathon is buying in the downturn, which means that Bitcoin is likely to rise again soon.
Marathon CEO Merrick Okamoto noted that the company has signed contracts for the purchase of 103,060 miners. The new production facilities will be fully operational by early 2022. According to him, with the current mining complexity, the company will be able to mine 55-60 bitcoins per day ($1.8 - $ 2million).
At the end of December, Marathon announced the purchase of 70,000 Bitmain S-19 ASIC miners. This equipment is specially designed for highly efficient bitcoin mining. The purchase cost the company $170 million.
According to Okamoto, this order became the largest in Bitmain history and made Marathon one of the largest mining corporations in the world. Taking into account the new production facilities, the aggregate hash rate of the company will reach 10.36 EH / s.
To improve production efficiency, the company entered into an agreement with Beowulf Energy to supply cheap electricity.
This expansion will slightly weaken China's dominance in the bitcoin mining market. Now more than 50% of all miners are concentrated in the Asian country. Some experts believe that the Chinese government may deliberately provoke a network outage. Several companies are pursuing initiatives to deploy mining in North America.
They are expanding their capacity in exchange for cheap electricity. The cabinet and advisers to US President Joe Biden, who hold mixed views on cryptocurrencies, could influence the success of the mining business in the United States.
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