- On July 25, Marathon Digital purchased $100 million worth of Bitcoin.
- The company opts for a HODL strategy, which reflects the long-term value of BTC.
Marathon Digital will take place on July 25 [MARA]the largest Bitcoin [BTC] mining company, announced the purchase of $100 million in BTC. At the time of writing, the company owned over 20,000 BTC, worth $1.3 billion.
Source: MARA
In addition to continued mining and market acquisitions, the company is committed to the HODL strategy.
The strategy involves the company continuously accumulating its BTC without selling, anticipating future high demand and price increases. Marathon explained that,
“Adopting a full HODL strategy reflects our confidence in the long-term value of Bitcoin. We believe that Bitcoin is the best treasury reserve in the world and support the idea of sovereign wealth funds holding it. We encourage governments and companies to all hold Bitcoin as a reserve.”
What this strategy means for Bitcoin
Over the past few months, Mara has been working hard to reduce BTC sales. According to Bernstein, the company has reduced total revenue from 56% in 2023 to 31% in 2024.
With the HODL strategy, MARA will have zero sales, just like before 2023.
Source: Bernstein
If the king coin comes to Bitcoin, it is poised to gain 16% of its current value annually, pushing its market cap to over $60 trillion.
With such expected growth, MARA’s stock will also rise exceptionally, with the current $1.3 billion in BTC being based on a 208% annual gain from the current 20,000 BTC shares.
As the company continues its strategic open market and mining activities, it could double its profits by more than $500 million annually.
This will be a direct reflection of the share value growth, which is down 11.56% YTD due to continued BTC selling.
Source: Google Finance
Read Bitcoin’s [BTC] Price forecast 2024-25
If investors stick with Marathon Digital’s approach of simply HODLing, they could see profits too, as Bitcoin is known for providing the best returns for long-term investors.
However, don’t take this as investment advice, and as with all cryptocurrencies, always think about DYOR.
