Bitcoin Miner MARA Acquires $100 Million in Bitcoin

Bitcoin miner MARA, formerly known as Marathon Digital, announced its acquisition of an additional $100 million worth of bitcoin on Thursday. This brings MARA’s total holdings to over 20,000 BTC (worth approximately $1.3 billion), which represents nearly 0.1% of bitcoin’s total supply of 21 million, according to a statement shared with The Block.

Purchase Details

MARA did not specify when these purchases were made or at what average price. CFO Salman Khan mentioned that the firm aimed to “strategically take advantage of favorable market conditions” for this opportunistic acquisition. Based on the dollar amount and previous holdings of 18,536 BTC at the end of June, it is estimated that the recent purchase was around 1,500 BTC, likely acquired between the price range of $54,000 to $68,000 this month.

Previous Acquisitions

This is not MARA’s first acquisition outside of its mining production; the company purchased $150 million worth of bitcoin in January 2021. Khan stated that most of the bitcoin on their balance sheet has been mined by the company itself.

MARA’s HODL Strategy

MARA has announced a full “HODL” strategy for its bitcoin treasury, which means it will retain all the bitcoin generated from its mining operations and will make further strategic acquisitions periodically. Chairman and CEO Fred Thiel emphasized the company’s confidence in the long-term value of bitcoin, advocating for it as the best treasury reserve asset for sovereign wealth funds and corporations.

MARA has reduced the amount of bitcoin sold from its production, decreasing from 56% in 2023 to 31% in 2024, according to a report from research and brokerage firm Bernstein.

Looking Ahead

Prior to last year, MARA held all of its bitcoin, and given the current market conditions and institutional support, the company is focusing on growing its bitcoin holdings again. Khan stated that the recent decline in bitcoin prices and the strength of their balance sheet provided an opportunity to increase holdings.

Future operations will be funded by leveraging existing cash and capital markets. Additionally, in September 2023, MARA expanded into altcoin mining to diversify its revenue streams post-Bitcoin halving, deploying its first Kaspa application-specific integrated circuit (ASIC) miners.