U.S. Mining Company Marathon Now Holds 8,133 BTC. And They’re Not Selling It
January 05 2022 - 2:13AM
NEWSBTC
In their December report, Marathon Digital Holdings announced their
total BTC holdings. And assured their investors that they were not
selling any of it any time soon. This is particularly interesting
considering the company bought “a record number” of S19s in
December. Reportedly, they got a giant loan using Bitcoin as
collateral. An operation we’ll see a lot more in the near future
throughout the industry. The report quotes Fred Thiel,
Marathon’s CEO, in a celebratory mode. “2021 was a transformative
year for Marathon as we increased our hash rate 1,790% and
increased our bitcoin production 846% year-over-year to 3,197
self-mined BTC.” Staggering numbers that show the size of the
Bitcoin mining business. Marathon announced an record investment of
nearly $1B in new equipment just before Xmas… BUT THEIR STILL
HODLING ALL THEIR #BTC!https://t.co/PRlaHMNR7j — What Bitcoin Did
(@WhatBitcoinDid) January 4, 2022 As for their holding plans, the
report says: “The Company last sold bitcoin on October 21, 2020,
and since then, has been accumulating or “hodling” all bitcoin
generated. As a result, Marathon currently holds approximately
8,133 BTC, including the 4,813 BTC the Company purchased in January
2021 for an average price of $31,168 per BTC.” Of course, they’re
not alone. NewsBTC documented the trend throughout the whole
year. Most Miners Are Holding Strong One of the first persons
to spot the trend was Lex Moskovski. In February, the analyst
reported on “the first day since Dec, 27 when Miners Position
change turned positive.” Miners have stopped selling and
started accumulating #Bitcoin Yesterday was the first day since
Dec, 27 when Miners Position change turned positive. Miners were
selling their bitcoins for two months. Bullish.
pic.twitter.com/S89iBcz4k3 — Lex Moskovski 🐙 (@mskvsk) February 27,
2021 Approximately four months ago, NewsBTC used data to find a
possible explanation: “Data shows that miner profitability has
dropped in comparison to the last time that bitcoin was at this
price. The profitability for bitcoin back in April at $50K had been
40% higher than it is right now when bitcoin hit $50K again. This
means that miner profitability is hitting the lows at all-time
highs. This drop in profitability has seen miners refusing to sell
the BTC they are rewarded with for mining blocks. Instead choosing
to hold these coins in wait for much higher prices.” Miner
profitability might be decreasing, but, the business is still a
long way from turning red. Especially for a giant operation like
Marathon. In a recent interview that NewsBTC reported on, Fred
Thiel said: “Thiel expressed that, factoring operational mining
costs (energy plus hosting), Bitcoin’s breakeven rate is roughly
$6,500, meaning that the digital coin would need to drop at least
80% for Marathon to face challenging difficulties.” Less than three
months ago, NewsBTC reported on another set of data that showed the
same phenomenon: “BTC miner reserves continue to trend sideways
amid the coin’s strong move up. The “miner reserve” is a indicator
that shows the total amount of Bitcoin that miners are currently
holding in their wallets. An increase in the metric’s value
suggests miners think the coin’s value will go up in the near
future, hence they are stocking up on it.” BTC price chart for
01/05/2021 on FX | Source: BTC/USD on TradingView.com The Marathon
Mining Company’s Future The company’s recent billion-dollar
investment is a play for the future. Especially considering just
when those machines will arrive. “On December 23, 2021, Marathon
announced that it had entered into a contract with BITMAIN to
purchase a record number of ANTMINER S19 XP (140 TH/s) bitcoin
miners, all of which are currently expected to ship from BITMAIN
between July 2022 and December 2022.” The chip shortage is real,
people. If an order this size can only be fulfilled in six to
twelve months, something’s up. Also, by the looks of it, the ASIC
manufacturing business might be even more profitable than Bitcoin
mining. That’s a topic for another day, however. Featured Image by
Mārtiņš Zemlickis on Unsplash - Charts by TradingView
TRON (COIN:TRXUSD)
Historical Stock Chart
From Aug 2024 to Sep 2024
TRON (COIN:TRXUSD)
Historical Stock Chart
From Sep 2023 to Sep 2024