It has been a long time since Marathon Digital Holdings has been in the crypto space. The company recently made the news with its decision to sell 1,500 BTC in January.
This decision to sell these coins comes after more than two years of maintaining their HODL strategy of not selling mined BTCs. The HODL strategy, an acronym for ‘hold on for dear life,’ is a popular strategy among crypto enthusiasts who choose to hold onto their coins for long periods and maximize their profits.
At the start of 2023, Marathon recorded a substantial rise in BTC mining, producing 687 BTC in January, compared to 475 BTC in December 2022. Chairman and CEO Fred Thiel attributed the gains to the “team’s ability to work in sync” with the new hosting provider in McCamey, Texas.
He highlighted the improvements in operational efficiency and the steps taken to secure their financial status as the reasons behind the firm’s successful performance. Due to the slight surge in Bitcoin prices at the start of the year, Marathon chose to sell 1,500 BTC from its holdings to secure operational funds for corporate purposes.
This is the first time in two years that the company has liquidated part of its resources, allowing it to remain financially sound and continue to invest in its core business. The proceeds from the sale will be used to ensure Marathon’s long-term success.
Also read:Marathon has 11,418 BTC, with unrestricted access to 8,090 BTC (roughly equivalent to $190 million at current rates). Additionally, the firm held $133.8 million in free cash at the end of the month.
The firm strives to maximize its mining proficiency throughout 2023 with a target of around 23 exahashes of computing power by July this year. The team is confident that it will transform Marathon into one of the world’s leading Bitcoin mining companies.
Since it debuted on Nasdaq in 2013, MARA’s shares have surged impressively, especially in the past month. The stock now trades at roughly $8, representing an increase of 135% since the start of the year.
Interest In Compute North
In December last year, there were reports that Marathon was considering purchasing Compute North Holdings, a troubled crypto data center. To look into the matter further, Marathon sought the help of professionals and consulted Guggenheim Partners and Weil Gotshal & Manges.
Compute North is a significant hosting service provider for Marathon, with 68,000 Bitcoin mining machines in their Texas-based wind-powered facility in the third quarter of 2022. Unfortunately, 40,000 of the units were left idle due to legal issues.
In September 2022, Compute North declared bankruptcy. The filing revealed that Marathon’s total exposure to the venture was an estimated $80 million. Unfortunately, this is a massive financial loss for Marathon and a stark reminder of the potential risks involved in investing in highly speculative projects.
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