The company is diversifying into Bitcoin, making its purchase one of the largest by a public company.
Marathon Patent Group, a publicly traded company listed on Nasdaq, purchased 4,812 bitcoins for a total of $150 million, approximately $820 million in the conversion. The company purchased the digital currency through New York Digital Investment Group (NYDIG) at an average price of $31,168 per Bitcoin.
“By buying $150 million in Bitcoin, we have accelerated the process of transforming Marathon into what we believe is the de facto investment choice for individuals and institutions seeking exposure to this new asset class,” said Merrick Okamoto, president of Marathon and CEO.
The company’s chairman said he believed that maintaining part of its Treasury reserves at Bitcoin would be a better long-term strategy than maintaining US dollars.
“We believe that keeping part of our Treasury reserves in Bitcoin will be a better long-term strategy than keeping U.S. dollars, similar to other forward-thinking companies like MicroStrategy.
By leveraging our available money to invest in Bitcoin now, we turn our potential to be a pure investment into a reality. ”
Despite the name, Marathon is a Bitcoin mining company, they raised about $250 million recently to buy mining equipment, but currently there is a shortage of chips due to lockdowns, so delays are expected.
Instead of waiting with cash, the company is diversifying into Bitcoin, making its purchase one of the largest by a public company.
Marathon has purchased some 103,060 pieces of equipment, all of which are expected to be delivered and deployed by the end of the first quarter of 2022. According to the company, if all the equipment were in operation, based on the current Bitcoin network difficulty rate, it would produce 50 Bitcoins every day.
The mining industry is now going through what the company called the “arms race” for new platforms. More mining machines means more mining power, which means more Bitcoins, and Marathon is racing to achieve it.
The company will not reach its target mining capacity any time soon. In the meantime, it is using its money “to invest in Bitcoin now,” the company’s CEO told Coindesk.