$150M in Bitcoin Purchased by Marathon Patent Group – Grayscale $1M Crypto – Lloyd Blankfein BTC
Mining company Marathon buys bitcoins for $ 150 million
NASDAQ registered Marathon Patent Group (MARA) buys $ 150 million worth of bitcoins
The company transfers part of its cash reserves to bitcoin
Las Vegas company buys bitcoin for the first time on the open market
Marathon Patent Group, a publicly traded bitcoin mining company, purchases $ 150 million of coins during a price correction last week
The mining company Marathon has acquired almost 5,000 bitcoins on the open market. Financial company NYDIG helped complete the transaction.
The company noted that the deal went through quickly. In December 2020, NYDIG also helped Mass Mutual buy $ 100 million worth of bitcoins..
Bitcoin on Nasdaq
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.
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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 bitcoin is likely to rise again soon.
Marathon Shares Up Nearly 900% In 2020 | Source: TradingView
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 complexity of mining, the company will be able to mine 55-60 bitcoins per day ($ 1.8 – $ 2 million).
At the end of December, Marathon announced the purchase of 70,000 Bitmain S-19 ASIC miners.
This equipment is specially designed for high efficiency 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 hashrate of the company will reach 10.36 EH / s.
To improve production efficiency, the company entered into a contract 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. Some companies are implementing initiatives to roll out mining in North America.
They expand their capacity in exchange for cheap electricity.
US President Joe Biden’s Cabinet and Advisers, who hold mixed views on cryptocurrencies, could influence the success of the mining business in the US.
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