Marathon Invests $150 Million in Bitcoin
January 25 2021 - 8:00AM
Marathon Patent Group, Inc.
(NASDAQ:MARA) ("Marathon"
or "Company"), one of the largest enterprise Bitcoin
self-mining companies in North America, today announced that it has
purchased 4,812.66 BTC in an aggregate purchase price of $150
million. As a result, the Company has strengthened its position as
one of the only Nasdaq-listed, pure-play investment options for
individuals and institutions seeking exposure to Bitcoin.
To ensure the purchase was conducted effectively, Marathon
worked with NYDIG, a leading technology and financial services firm
dedicated to Bitcoin. NYDIG’s trading, execution, and asset
management expertise enabled Marathon to take advantage of
favorable market conditions and execute the transaction as
efficiently as possible.
“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. We
also believe that holding part of our Treasury reserves in Bitcoin
will be a better long-term strategy than holding US Dollars,
similar to other forward-thinking companies like MicroStrategy,”
said Merrick Okamoto, Marathon’s chairman & CEO. “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.”
Robby Gutmann, co-founder and CEO of NYDIG, commented, “We
deeply admire Marathon’s commitment to the Bitcoin ecosystem, and
we are very pleased to add them to the list of companies who
utilize NYDIG as the institutional choice for Corporate Treasury
Solutions. NYDIG is uniquely positioned to help corporations
navigate the challenges they face around executing and structuring
the holding of large Bitcoin positions, and our ability to deliver
Marathon a tailored and custom solution, with a quick turnaround,
and no market impact, is why corporations and insurance companies
choose NYDIG.”
Investor NoticeInvesting in our securities
involves a high degree of risk. Before making an investment
decision, you should carefully consider the risks, uncertainties
and forward-looking statements described under "Risk Factors" in
Item 1A of our most recent Annual Report on Form 10-K for the
fiscal year ended December 31, 2019. If any of these risks were to
occur, our business, financial condition or results of operations
would likely suffer. In that event, the value of our securities
could decline, and you could lose part or all of your investment.
The risks and uncertainties we describe are not the only ones
facing us. Additional risks not presently known to us or that we
currently deem immaterial may also impair our business operations.
In addition, our past financial performance may not be a reliable
indicator of future performance, and historical trends should not
be used to anticipate results in the future. Future changes in the
network-wide mining difficulty rate or Bitcoin hashrate may also
materially affect the future performance of Marathon's production
of Bitcoin. See "Safe Harbor" below.
Forward-Looking StatementsStatements made in
this press release include forward-looking statements within the
meaning of Section 27A of the Securities Act of 1933, as amended,
and Section 21E of the Securities Exchange Act of 1934.
Forward-looking statements can be identified by the use of words
such as “may,” “will,” “plan,” “should,” “expect,” “anticipate,”
“estimate,” “continue,” or comparable terminology. Such
forward-looking statements are inherently subject to certain risks,
trends and uncertainties, many of which the Company cannot predict
with accuracy and some of which the Company might not even
anticipate and involve factors that may cause actual results to
differ materially from those projected or suggested. Readers are
cautioned not to place undue reliance on these forward-looking
statements and are advised to consider the factors listed above
together with the additional factors under the heading “Risk
Factors” in the Company's Annual Reports on Form 10-K, as may be
supplemented or amended by the Company's Quarterly Reports on Form
10-Q. The Company assumes no obligation to update or supplement
forward-looking statements that become untrue because of subsequent
events, new information or otherwise.
About NYDIGNYDIG is a leading technology and
financial services firm dedicated to Bitcoin. The firm and its
subsidiaries provide institutional investment, brokerage, treasury,
and technology solutions to institutions, banks, and private
clients, including insured custody, execution, asset management,
financing, and research. NYDIG was founded in 2017 as the digital
asset subsidiary of Stone Ridge Holdings Group, owner of a $10B+
alternatives asset manager in New York. NYDIG meets the
industry’s highest regulatory, audit, and governance standards, and
the firm’s subsidiaries hold both a BitLicense and a limited
purpose trust charter from the New York State Department
of Financial Services. For more information,
visit www.nydig.com.
About Marathon Patent GroupMarathon is a
digital asset technology company that mines cryptocurrencies, with
a focus on the blockchain ecosystem and the generation of digital
assets.
Marathon Patent Group Company Contact:Jason
AssadTelephone: 678-570-6791Email: Jason@marathonpg.com
Marathon Patent Group Investor Contact:Gateway
Investor RelationsMatt Glover and Charlie Schumacher Telephone:
949-574-3860Email: MARA@gatewayir.com
NYDIG Press Contact:Conor
SheaEdelmanconor.shea@edelman.com
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