Marathon Digital Holdings Sells Some of Its Bitcoin for the First Time
Terrill Dicki Feb 04, 2023 12:15
In January, Marathon Digital, the second-largest Bitcoin holder after Michael Saylor's Microstrategy, sold 1,500 BTC.
The cryptocurrency mining company Marathon Digital Holdings has sold part of its Bitcoin (BTC) holdings for the first time in the last two years, making it the second biggest publicly-listed holder of Bitcoin.
The firm reported in an update that was published on February 2 that throughout the month of January it had sold 1,500 BTC, which is equivalent to $35.3 million at the current pricing.
Charlie Schumacher, vice president of corporate communications for Marathon, said that despite the fact that some crypto miners have been compelled to sell Bitcoin owing to the current market conditions, this is not the case for Marathon.
Schumacher said that Marathon had been diamond-handling its Bitcoin up to this point because the company did not want to sell while output was down. Marathon has been positive on the long-term prospects of the most prominent cryptocurrency.
Marathon, however, plans to enter the new year with a "war chest" of liquidity that will be comprised of both cash and Bitcoin. Additionally, the company intends to continue paying down its debt and increasing its cash balances.
In addition, Schumacher said that the recent price increase of bitcoin was a factor that led to the decision to sell part of its assets.
The price of Bitcoin broke beyond the $24,000 threshold for the first time since August, when it did so in the month of January.
Even after the transaction, Marathon was able to bring its total unconstrained Bitcoin holdings to 8,090 BTC for the month, which is equivalent to $189.8 million.
Marathon said that it has greatly increased Bitcoin output over the month of January, creating 687 BTC. This figure indicates a 45% increase in production in comparison to the amount produced during the previous month. The chairman and CEO of Marathon, Fred Thiel, stated the following in the latest update: "The improvement in our bitcoin production was primarily a result of our team's ability to work in tandem with the new hosting provider in McCamey, Texas, to address the maintenance and technical issues at the King Mountain data centre that had suppressed our bitcoin production in the fourth quarter of 2022." This information was provided in a May 4 update from the previous year. Marathon had stated that the last time it had sold any Bitcoin was on
When questioned how it had been able to avoid selling the primary product of its business operations, Schumacher referred to the company's minimal staff, which consisted of "32 individuals as of today," and argued that it was the outcome of strong long-term financial plans.
According to CoinGecko, Marathon is the second-largest publicly listed holder of Bitcoin. The software analytics business MicroStrategy is the largest publicly listed holder of Bitcoin. According to MarketWatch, the company's stock has increased by 135% so far this year to a price of $8, which has led to a huge increase in the share price that it has been reporting over the last few days.
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