Posted 3 months ago | by @devadmin
CEO Merrick Okamoto of Nevada-based crypto mining firm Marathon Patent Group said his company had purchased $150 million in Bitcoin, which would help its customers who are seeking “exposure to this new asset class.”
Marathon announced that it had purchased more than 4,812 Bitcoin (BTC) or $150 million worth through the New York Digital Investment Group (NYDIG) — at an average price of $31,168 per coin. The CEO and chairman Merrick Okamoto stated the move was “a better long-term strategy than holding U.S. Dollars.” While subsequently comparing the Bitcoin purchase to companies like MicroStrategy, the business intelligence firm that made an initial $425 million crypto investment last year and has since bought far more coins.
“By purchasing $150 million worth of Bitcoin, we have accelerated the process of building Marathon into what we believe to be the de facto investment choice for individuals and institutions who are seeking exposure to this new asset class.”
Marathon expanded its operations in 2020 in an effort to become North America’s largest Bitcoin miner, expecting 100,000 Bitcoin mining rigs by the end of Q1 2021.
“To date, we have contracted to purchase 103,060 miners, all of which are currently expected to be delivered and fully deployed by the end of the first quarter of fiscal 2022. If all miners were operational today, based on the Bitcoin network’s current difficulty rate, we would produce approximately 55-60 bitcoins per day. However, by leveraging our cash on hand to invest in Bitcoin now, we have transformed our potential to be a pure-play investment into a reality. I would like to thank the entire NYDIG team for offering their unique products and services for public companies and for working with us to expedite this process and ensure the transaction was made on the best possible terms for our business and our shareholders,” Okamoto said.
Marathon is yet another institutional player to get involved in buying Bitcoin as a “reserve asset.” Last year, Microstrategy was one of the first to buy Bitcoin as a “Treasury reserve asset.” The CEO of Microstrategy Michael Saylor also revealed that he personally owns about $240 million in Bitcoin himself.
Microstrategy itself originally purchased approximately 38,250 bitcoins for an average purchase price of about $11,111 per BTC, at an aggregate purchase price of $425 million, Bitboy Crypto reported.
However, the company has since purchased even more Bitcoin after its original dip into the crypto waters. Kraken’s Bitcoin strategist Pierre Rochard has previously said that he believes BTC will see an explosion of corporate interest in 2021, predicting 50% of the top 500 companies will own Bitcoin by the end of next year, as Bitboy Crypto reported.
Bitcoin is currently trading at [FIAT: $33,857.06] UP +6.4% in the last 24 hours, according to Coingecko at the time of this report.