Marathon Digital spends $100 million to buy and hold more Bitcoins, transitioning to ‘full HODL’

Marathon Digital, a prominent Bitcoin mining firm, has invested $100 million in Bitcoin over the past month. This move aims to "strengthen" its treasury strategy, according to CEO Fred Thiel.

Full HODL Approach

Marathon Digital's new strategy involves retaining all mined BTC and accumulating more from open markets. Thiel announced, “Today Marathon is proud to announce that to strengthen our strategy of holding #Bitcoin as our strategic treasury reserve asset…We will now go full HODL.”

Trend Among Miners

A Bernstein report highlights Marathon Digital’s reduced BTC sales, with sales as a percentage of production dropping from 56% in 2023 to 31% in 2024. Other major BTC miners, such as Riot Platforms and CleanSpark, are also adopting similar HODL strategies.

CEO's Call to Action

Thiel encourages other corporations and governments to adopt Bitcoin as a strategic treasury reserve. He asserts, “We believe Bitcoin is the world’s best treasury reserve asset and support the idea of sovereign wealth funds holding it. We encourage governments and corporations to all hold bitcoin as a reserve asset.”

Challenges for Miners

Despite the optimism, average mining costs remain high, currently around $70K, compared to Bitcoin's current value of $65K. This profitability issue is particularly challenging for smaller private firms.

Analyst Insights

Bitcoin analyst Willy Woo suggests that the profitability crisis for miners might soon end, potentially boosting BTC miner stocks, including Marathon Digital.