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HomeNewsMarathon Digital Switches to Full HODL: What It Means for Bitcoin's Future

Marathon Digital Switches to Full HODL: What It Means for Bitcoin’s Future

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  • CEO Fred Thiel emphasizes Bitcoin as a strategic reserve, advising governments and corporations to hold it.
  • Marathon Digital reduces its Bitcoin sales from 56% in 2023 to 31% in 2024, reflecting a trend among miners.

Marathon Digital, a well-known Bitcoin mining company, has recently increased its Bitcoin holdings by purchasing an additional $100 million of the cryptocurrency. This acquisition is part of the company’s new strategy, described as ‘full HODL,’ which involves retaining all Bitcoin mined and continuing to buy more from the open market.

Fred Thiel, CEO of Marathon Digital, explained the company’s strategy adjustment.

 “To strengthen our strategy of holding Bitcoin as our strategic treasury reserve asset, we will now go full HODL,” he said. 

This move indicates Marathon Digital’s commitment to Bitcoin as a long-term investment.

This shift towards a full HODL strategy is reflective of a larger trend among Bitcoin mining companies, which are increasingly focusing on holding onto their Bitcoin for future value rather than selling it immediately.

A recent Bernstein report showed that Marathon Digital has reduced the percentage of its Bitcoin sales from 56% in 2023 to 31% in 2024, aligning with similar trends at other mining companies like Riot Platforms and CleanSpark.

Marathon-Digital-BTC-sold-as-production-percentage
Source: Bernstein

Additionally, Thiel promotes the use of Bitcoin as a strategic reserve asset, suggesting it for both government and corporate financial strategies. 

“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,” Thiel stated.

Despite the strategic moves by major mining companies, the profitability of Bitcoin mining remains a challenge. The average cost of mining stands at $70,000, which exceeds the current market price of Bitcoin at $65,000. This cost disparity poses profitability issues, especially for smaller, private mining operations.

average-BTC-mining-costs
Source: MacroMicro

However, according to Bitcoin analyst Willy Woo, there may be a positive shift soon. Woo anticipates that an end to the current phase of miner capitulation could lead to a rally in Bitcoin miner stocks, potentially improving the economic outlook for companies like Marathon Digital.

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Isai Alexei
Isai Alexei
As a content creator, Isai Alexei holds a degree in Marketing, providing a solid foundation for the exploration of technology and finance. Isai's journey into the crypto space began during academic years, where the transformative potential of blockchain technology was initially grasped. Intrigued, Isai delved deeper, ultimately making the inaugural cryptocurrency investment in Bitcoin. Witnessing the evolution of the crypto landscape has been both exciting and educational. Ethereum, with its smart contract capabilities, stands out as Isai's favorite, reflecting a genuine enthusiasm for cutting-edge web3 technologies. Business Email: [email protected] Phone: +49 160 92211628
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