Marathon Patent Group announced yesterday that it had bought about 4,813 units worth approximately $ 150 million worth of bitcoins.
To Report The Block is funded by the company’s reserve fund. Marathon CEO Merrick Okamoto has confirmed this. This is the first time that a company active in the field of bitcoin mining buys bitcoins. “Okamoto said:
By turning our liquidity into investing in bitcoin, we have made investing in the same market in which we operate a reality. We believe that maintaining part of the treasury in the form of bitcoin is a better long-term strategy than holding the US dollar. Our work is similar to that of futuristic companies like MicroStrategy..
Marathon shares have risen 892 percent over the past year. During the same period, the value of microstrate shares increased by 166%. Bitcoin, meanwhile, has jumped 300 percent.
The marathon raised $ 250 million in cash earlier this month. Asked if the money had been used to buy bitcoins, Okamoto said:
Prior to the fundraiser, we had $ 425 million in cash and used it to buy bitcoins.
Bitcoin was purchased by Marathon through NYDIG. The bitcoins were reportedly purchased at a unit price of $ 31,135. According to NYDIG, it took only a few hours from the idea to its implementation. MassMutual also bought bitcoins through the same company last month. At that time, Myochal Copper bought 5 million shares of NYDIG.
Marathon has entered the field of bitcoin mining since 2017. According to Okamoto, there are currently 2,560 machines operating at the company’s facilities and about 1.5 to 2 bitcoins per day.
The company recently acquired tens of thousands of advanced S19s to expand its business. The value of these devices is estimated at $ 270 million. “Okamoto said:
These devices will be shipped this week. With full startup, the company’s total hash rate exceeds 10.34 ex hashes per second. With that said, we think the marathon will become the largest bitcoin miner in the world.
The current marathon hash rate is around 256 petas per second. Okomato believes that if new devices arrive, the company’s revenue will reach 55 to 60 bitcoins a day.
Referring to the partnership between the company and Beowulf Energy, Okamoto said the marathon stance is unique to long-term success. The Marathon-Beaufol Energy contract is for access to cheap electricity.
Most bitcoin miners have a template. The cost of this organization is in the range of 0.05 to 0.06 kWh.
Under Beowulf and Marathon, these costs have been reduced to $ 0.028. In other words, the cost of producing each bitcoin has dropped from $ 7,700 to $ 4,400. Okamoto did not comment on the marathon’s future investments in the bitcoin market.
The price of Bitcoin is currently in the $ 32,000 range.