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Title: Marathon Invests $150 Million In Bitcoin Post by: Upgrade00 on January 25, 2021, 09:26:37 PM Quote Marathon Patent Group, Inc. (NASDAQ:MARA) ("Marathon" or "Company"), one of the largest enterprise Bitcoin self-mining companies in North America, today announced that it has purchased 4,812.66 BTC in an aggregate purchase price of $150 million. As a result, the Company has strengthened its position as one of the only Nasdaq-listed, pure-play investment options for individuals and institutions seeking exposure to Bitcoin. Bitcoin is adopted by yet another public company, this time it's a pure-play investment option. Side note: A pure play stock is one which focuses on a single product or service; there is no diversification and it runs on a single means of revenue. In this case, that source of revenue is Bitcoin as Marathon is a mining service which focuses solely on the blockchain technology. A quick check shows that they bought each Bitcoin at averagely $31,167.79. This goes to show that institutional investment and interest is growing despite the price increase, so a lot of people expect that there is still huge potential for growth and that Bitcoin is the monetary system of the future. More details: Quote To ensure the purchase was conducted effectively, Marathon worked with NYDIG, a leading technology and financial services firm dedicated to Bitcoin. NYDIG’s trading, execution, and asset management expertise enabled Marathon to take advantage of favorable market conditions and execute the transaction as efficiently as possible. Quote “By purchasing $150 million worth of Bitcoin, we have accelerated the process of building Marathon into what we believe to be the de facto investment choice for individuals and institutions who are seeking exposure to this new asset class. We also believe that holding part of our Treasury reserves in Bitcoin will be a better long-term strategy than holding US Dollars, similar to other forward-thinking companies like MicroStrategy,” said Merrick Okamoto, Marathon’s chairman & CEO. “To date, we have contracted to purchase 103,060 miners, all of which are currently expected to be delivered and fully deployed by the end of the first quarter of fiscal 2022. If all miners were operational today, based on the Bitcoin network’s current difficulty rate, we would produce approximately 55-60 bitcoins per day. However, by leveraging our cash on hand to invest in Bitcoin now, we have transformed our potential to be a pure-play investment into a reality. I would like to thank the entire NYDIG team for offering their unique products and services for public companies, and for working with us to expedite this process and ensure the transaction was made on the best possible terms for our business and our shareholders.” Source: https://ir.marathonpg.com/press-releases/detail/1224/marathon-invests-150-million-in-bitcoinSome people would wonder why a mining company would wish to purchase Bitcoin while they get then from mining blocks. Well, despite being a mining company, it still holds fiat in it's balance sheet and as a reserve currency as that is still the common choice, however, with their shift to a bitcoin standard, they are pushing the idea that Bitcoin can function effectively in that regards and there's no reason to sell it or convert it to centralized currencies. Title: Re: Marathon Invests $150 Million In Bitcoin Post by: tippytoes on January 25, 2021, 09:29:32 PM @ OP, you forgot to include your article reference link.
But read also from this site about this marathon investments. https://www.globenewswire.com/news-release/2021/01/25/2163436/0/en/Marathon-Invests-150-Million-in-Bitcoin.html As they bought above 31k level, that means, they have strong expectations that bitcoin will increase much further and not go below 30k. As they are a mining company, I guess they are taking advantage of the cold weather of quebec, and looking for profits investing more miners in the next months to come. Title: Re: Marathon Invests $150 Million In Bitcoin Post by: STT on January 25, 2021, 11:56:05 PM 31k is a pretty large buy in price, they are late in this game plan but early on a decade perspective of course just for a business plan they should have been buying the whole of 2020 not just during this rise so that part is something that sticks out for me. Companies often buy assets, their own shares even but they do so with a particular plan to mark against markets and volume within that market.
Quote they are pushing the idea that Bitcoin can function effectively in that regards and there's no reason to sell it or convert it to centralized currencies. They will have liabilities in dollars still, taxes obviously so liquidity is important. A bigger plan so they arent forced into any selling at any time is important, its not so straight forward imo but no doubt they get interest from investors. Title: Re: Marathon Invests $150 Million In Bitcoin Post by: The Sceptical Chymist on January 26, 2021, 12:20:37 AM Huh, there's another company I'll have to add to my stock watchlist. I did see this when I looked them up just now:
https://i.imgur.com/Jlxz3lD.png ....which may mean nothing, or it might mean they're headed toward being delisted from the NASDAQ. Looking at their chart, they've already had to do more than one reverse split, which is never a good omen. It's nice that they bought all of that bitcoin, but they're a stock I wouldn't touch with a ten foot pole. I wonder if they're hoping bitcoin will explode and thus boost their stock price a little bit (I can't imagine not hoping that, but I'm also wondering if that's the sole reason for the purchase. Title: Re: Marathon Invests $150 Million In Bitcoin Post by: jaysabi on January 26, 2021, 01:04:55 AM Huh, there's another company I'll have to add to my stock watchlist. I did see this when I looked them up just now: https://i.imgur.com/Jlxz3lD.png ....which may mean nothing, or it might mean they're headed toward being delisted from the NASDAQ. Looking at their chart, they've already had to do more than one reverse split, which is never a good omen. It's nice that they bought all of that bitcoin, but they're a stock I wouldn't touch with a ten foot pole. I wonder if they're hoping bitcoin will explode and thus boost their stock price a little bit (I can't imagine not hoping that, but I'm also wondering if that's the sole reason for the purchase. This was a penny stock before the price of bitcoin sent crypto mining companies through the roof. Do your homework on this, this isn't a company I'd invest in personally. The stock was up 2200% last year because of the price of bitcoin driving everything bitcoin-related insane, however the company is not profitable, they're cash flow negative, and they have a lot of debt. One thing they did right was issuing a ton of shares when their stock price went crazy (they more than doubled outstanding shares last year), and used that to buy a ton of new miners. They've also cut a deal with an energy provider to get very cheap power, but it remains to be seen if these two developments will drive this company to profitability. My prediction is it will not, the underlying business is poor and the stock price will continue to mimic the price of bitcoin while the legacy business continues to struggle. The new mining power will deliver decreasing returns over time and I doubt they'll produce enough profit to ever pay off the investment (because they've never been able to before). Title: Re: Marathon Invests $150 Million In Bitcoin Post by: The Sceptical Chymist on January 26, 2021, 01:28:44 AM This was a penny stock before the price of bitcoin sent crypto mining companies through the roof. Do your homework on this, this isn't a company I'd invest in personally. I believe it when you're telling me it was a penny stock--and they did do a few reverse splits if I'm interpreting the data correctly. I always get confused if 1:4 is a one share-->four shares split, or if it means the opposite. I assumed in the case of Marathon that they were reverse splits given that there was no justification for a traditional split, as the stock price was nowhere near high enough. I'm not really interested in the company and don't plan to research it further, but I do want to track its progress as I do with a few other blockchain-oriented companies or ones like MSTR that own tons of BTC. Title: Re: Marathon Invests $150 Million In Bitcoin Post by: Upgrade00 on January 26, 2021, 04:23:48 AM Companies often buy assets, their own shares even but they do so with a particular plan to mark against markets and volume within that market. Buying at the current price doesn't mean they didn't have a plan. A lot of companies are just beginning to really take notice of Bitcoin. And rather than hesitating for more drops in price, they choose to jump in as a difference of a couple thousand dollar buy-in price would not matter much in the long term. Hesitating could also push the price farther away as it was >$40k some few weeks ago.I wonder if they're hoping bitcoin will explode and thus boost their stock price a little bit (I can't imagine not hoping that, but I'm also wondering if that's the sole reason for the purchase. Well in the article the CEO was quoted to have said:"We also believe that holding part of our Treasury reserves in Bitcoin will be a better long-term strategy than holding US Dollars, similar to other forward-thinking companies like MicroStrategy,” ... So the sole reason may have not been to boost their business side by investing in Bitcoin, and it may have something to do with them realizing that Bitcoin is better than fiat for the long term and they'll be better off having it in their reserve coffers. Title: Re: Marathon Invests $150 Million In Bitcoin Post by: zanezane on January 26, 2021, 04:37:58 AM Many big institutions are now getting into Bitcoin, they can't afford to miss the chance of buying bitcoin even on an expensive price right now and this proves to me that Bitcoin will fly more and as a small investors, I should also think positively and look forward for the peak price of Bitcoin. This is a good news for Bitcoin because this means that the prices will be going up again as another big company are pouring in to invest in Bitcoin, at the current price point I think that they will be hodling their Bitcoin for a long time. Hopefully, other companies affiliated to Marathon will do the same and invest into Bitcoin.They invest bitcoin like investing gold They have to adopt as well because they see how Bitcoin works and that's a good decision that can result to a big pump on the whole market of Bitcoin.Title: Re: Marathon Invests $150 Million In Bitcoin Post by: Haunebu on January 26, 2021, 07:54:48 AM This isn't surprising. With BTC rising in value with time, more and more investors will continue investing in it(Big and Small) due to the financial opportunities available through trading BTC on a regular basis.
This is a good thing, but more people need to use BTC as a currency or payment method instead of just viewing it as an asset all the time. This is a tough ask, but not impossible. Using BTC as a payment method more often would definitely attract more investors and improve its overall value over time. Title: Re: Marathon Invests $150 Million In Bitcoin Post by: yhiaali3 on January 26, 2021, 09:02:18 AM In the recent period, we have begun to notice the interest of large institutions and companies in Bitcoin, this indicates the belief of these large institutions in the future of Bitcoin and that it could be the currency of the future.
Marathon Patent Group did what could be called a double whammy because on the one hand it bought a large amount of bitcoin at a good price and on the other hand it bought mining miners so they could get 55-60 bitcoins per day, this is a really big and bold step, after a while Marathon will gets a large share of the Bitcoin market. Title: Re: Marathon Invests $150 Million In Bitcoin Post by: exstasie on January 26, 2021, 10:01:34 AM A quick check shows that they bought each Bitcoin at averagely $31,167.79. Interesting. Microstrategy bought their last bags at $31K too. Makes me think the market needs another sub-$30K plunge, just to make them both sweat. :P This goes to show that institutional investment and interest is growing despite the price increase It's a mixed bag. Some institutions are investing, others appear to be unwinding. Two metrics to note, both have to do with Grayscale. First, inflows have slowed, (https://www.bloomberg.com/news/articles/2021-01-25/bitcoin-return-to-40-000-in-doubt-as-grayscale-fund-flows-slow) suggesting institutional interest may be cooling off. Second, the GBTC premium has massively dumped and is currently around 7%, the lowest I've seen it in many months, probably years. Title: Re: Marathon Invests $150 Million In Bitcoin Post by: meanwords on January 26, 2021, 12:04:25 PM This is quite big, not just the value but the psychological impact on the smaller investors who wish to invest in Bitcoin but still have doubts.
This is a good thing, but more people need to use BTC as a currency or payment method instead of just viewing it as an asset all the time. This is a tough ask, but not impossible. Using BTC as a payment method more often would definitely attract more investors and improve its overall value over time. That's still wishful thinking because the fee of Bitcoin is still quite absurd to be used as a payment method. Many people will dislike the fees. It will definitely attract more people but it's still far too early for that right now. The only way I can see Bitcoin as a payment method is using a third-party wallet app. Title: Re: Marathon Invests $150 Million In Bitcoin Post by: davis196 on January 26, 2021, 12:23:10 PM Quote This was a penny stock before the price of bitcoin sent crypto mining companies through the roof. Do your homework on this, this isn't a company I'd invest in personally. The stock was up 2200% last year because of the price of bitcoin driving everything bitcoin-related insane, however the company is not profitable, they're cash flow negative, and they have a lot of debt. One thing they did right was issuing a ton of shares when their stock price went crazy (they more than doubled outstanding shares last year), and used that to buy a ton of new miners. They've also cut a deal with an energy provider to get very cheap power, but it remains to be seen if these two developments will drive this company to profitability. My prediction is it will not, the underlying business is poor and the stock price will continue to mimic the price of bitcoin while the legacy business continues to struggle. The new mining power will deliver decreasing returns over time and I doubt they'll produce enough profit to ever pay off the investment (because they've never been able to before). Just because a company doesn't have positive cashflow and big profits that doesn't mean the investors won't buy the stocks of the company for pump&dump profits or expectations for profits in the long term. Do you think that Tesla has a positive cashflow?The Tesla stocks increased their price 10 times in about 3 years.I still don't believe that the Tesla business model will be very sustainable and lucrative in the long term. Marathon are just scaling their mining business.Their mining business might not be profitable at the current BTC price,but it will become profitable at a 50K-100K USD Bitcoin price.Maybe that's why Marathon are betting more $ on Bitcoin. Title: Re: Marathon Invests $150 Million In Bitcoin Post by: stompix on January 26, 2021, 01:38:05 PM Guys, before cheering, you should know a bit about the company:
https://www.globenewswire.com/news-release/2021/01/05/2153383/0/en/Marathon-Patent-Group-and-DMG-Blockchain-Solutions-to-Form-the-Digital-Currency-Miners-of-North-America-DCMNA-and-Launch-North-America-s-First-Cooperative-Mining-Pool.html Especially this part: Quote “Clean block mining” that adheres to the Office of Foreign Asset Control’s (OFAC’s) compliance standards and reduces the risk of mining blocks that include transactions linked to nefarious activities You're cheering the investment of a company that wants to police the network based on what they see as a clean or a suspect transaction! Title: Re: Marathon Invests $150 Million In Bitcoin Post by: goldade on January 26, 2021, 01:59:36 PM This is a perfect example of the fact that there isn't a best time to buy bitcoin. Over the years, I've been faced with questions such as
When is the best time to buy? Isn't it too late to buy now? Isn't bitcoin way to expensive to buy now? Well, I always answer such questions with this phrase 'it's never too late to get on the moving train'. Marathon buying $150 million worth of Btc shows how much of recognition bitcoin is getting in the mainstream world. A lot of top companies are now accepting and even investing in bitcoin. This is good for the mass adoption of bitcoin. I believe so many companies and individuals will see this as a good sign to buy bitcoin Title: Re: Marathon Invests $150 Million In Bitcoin Post by: slapper on January 26, 2021, 02:10:21 PM What an astonishing price during a decrease like this. Many people are afraid to buy bitcoin cause of this big sell-off but this company does give people hope. Nearly 4500 bitcoins priced $31000 is a perfect buy for this firm. I believe they will be one of the most profitable companies in the next 5 years
Title: Re: Marathon Invests $150 Million In Bitcoin Post by: tomahawk9 on January 26, 2021, 02:17:15 PM You're cheering the investment of a company that wants to police the network based on what they see as a clean or a suspect transaction! if DCMNA members start censoring/rejecting transactions because they're "sketcky", there will be other pools that will accept those transactions, no? so all in all it's not a big deal? heh, i found this part pretty funny from the article you posted: “To date, companies such as ours have relied on pools primarily based in Asia to connect to the Bitcoin network, and we have been frustrated by the lack of transparency and audited data.<...>" yeah, every mining pool out there is so looking forward to start adding KYC policies to the bitcoin network, truly what the bitcoin community has wanted for a while, right? /s ::)btw, i wonder what "OFAC standards" actually mean when talking about bitcoin mining and transactions? like what are those standards that you have to meet in order for your tx to get accepted by this heavily pro KYC pool? Title: Re: Marathon Invests $150 Million In Bitcoin Post by: stompix on January 26, 2021, 02:33:28 PM if DCMNA members start censoring/rejecting transactions because they're "sketcky", there will be other pools that will accept those transactions, no? so all in all it's not a big deal? Theoretically, no! But, there is a possible problem with it. If "legit" transactions accepted by this pool also make it through other blocks occupying space and the blocks mined by them are just at let's say 10% of capacity since they don't have enough "clean" tx to fill it up it means that the chain capacity of confirmation will drop by (x% their share/percentage of the blocks they fill). Worst case scenario, taking into account they have a contract with bitmain over 100k miners, although the delivery will take close to a year, assuming no other large change in hashrate they could own somewhere from 8-10%, if all of those blocks are at 50% you see a 5% drop, it will hurt a bit in tx fees, If it's 10% and nearly empty blocks, say goodby to fees under 3-5$. It might not be something threatening but at the same time, there is no way spinning this into something positive, unfortunately. btw, i wonder what "OFAC standards" actually mean when talking about bitcoin mining and transactions? like what are those standards that you have to meet in order for your tx to get accepted by this heavily pro KYC pool? No idea! Title: Re: Marathon Invests $150 Million In Bitcoin Post by: sana54210 on January 27, 2021, 06:43:25 PM This isn't surprising. With BTC rising in value with time, more and more investors will continue investing in it(Big and Small) due to the financial opportunities available through trading BTC on a regular basis. I believe what you are asking will happen eventually but in order for that to happen we need to first handle the speed and cost of spending money on crypto. Now if you put your money into some exchange, buy and sell crypto there, and take out your profit back into fiat, you are not spending too much in the way, sure there is trading fee's but that is very little, so if you are a good trader you could make a ton of money.This is a good thing, but more people need to use BTC as a currency or payment method instead of just viewing it as an asset all the time. This is a tough ask, but not impossible. Using BTC as a payment method more often would definitely attract more investors and improve its overall value over time. However lets assume you want to buy something, sure you can buy something that is 1k+ dollars and not care about the fee's, but what about something 20-25 bucks? You want to pay 5-10 bucks fee just to do that? I happen to pay 8 bucks on a 20 dollar thing just recently, I really wanted it so I would have paid 50 bucks, but it made zero sense to pay 40% fee on it. So yeah, people "should" use it as a currency but they won't with this situation as long as fee's are high. Title: Re: Marathon Invests $150 Million In Bitcoin Post by: Upgrade00 on January 27, 2021, 07:07:22 PM It's a mixed bag. Some institutions are investing, others appear to be unwinding. Could be a minor pull back to assess the market as it has been going sideways for sometime now. Or we may have hit the ceiling with the current wave of interest and the next set of institutional investors would react if the market changes direction.Two metrics to note, both have to do with Grayscale. First, inflows have slowed, (https://www.bloomberg.com/news/articles/2021-01-25/bitcoin-return-to-40-000-in-doubt-as-grayscale-fund-flows-slow) suggesting institutional interest may be cooling off. Second, the GBTC premium has massively dumped and is currently around 7%, the lowest I've seen it in many months, probably years. You're cheering the investment of a company that wants to police the network based on what they see as a clean or a suspect transaction! An attempt to check the network is certainly unfavorable and negates the decentralized nature of Bitcoin, and I wasn't aware of this when I initially made the post. Adoption is welcome, but what is more important would be holders who actually understand how Bitcoin works and uses it the right way.<snip> Okay, I'll need a bit of clarity.You're saying the fact that they are only accepting transactions which they consider to be clean, means they would not be able to completely fill blocks they mine, this would then result in them having to increase the feerate to balance out the rewards they get from transaction fees? Or am I completely missing the point? Title: Re: Marathon Invests $150 Million In Bitcoin Post by: stompix on January 27, 2021, 07:22:44 PM Okay, I'll need a bit of clarity. You're saying the fact that they are only accepting transactions which they consider to be clean, means they would not be able to completely fill blocks they mine, this would then result in them having to increase the feerate to balance out the rewards they get from transaction fees? Or am I completely missing the point? Nope. Probably at the beginning, they will have not enough clients to fill their blocks and they will not pick random tx as that would undo whatever they want to achieve with those "clean" transactions. So, what we will have, based on today's data is, (I will use txs although it's not entirely correct but still, offers a simpler picture): 144 blocks today> 328,410 transactions(full blocks) , 2280 tx per block average But Marathon will have 8-10 percent of those blocks, let's go with 10% as it's easier That will make 14 blocks, with each 2280 tx capacity total 31900 but they will fill only 10% that's 3190. The rest will be empty space. So the network capacity will drop by 28710 transactions a day, leading people who don't have "clean" transactions to compete on a close to 90% smaller space thus increasing the fees on the "dark" blocks while making "clean blocks" cheaper and more attractive to companies. They will indeed lose some fees but currently, fees are just 7% of the reward so they will probably manage to overcome that. We on the other hand who don't want to get verified, are going to see this in the higher fees. And if they get hold of more gear and reach 20% it won't be pretty at all! Title: Re: Marathon Invests $150 Million In Bitcoin Post by: exstasie on January 27, 2021, 08:43:56 PM Okay, I'll need a bit of clarity. You're saying the fact that they are only accepting transactions which they consider to be clean, means they would not be able to completely fill blocks they mine, this would then result in them having to increase the feerate to balance out the rewards they get from transaction fees? Or am I completely missing the point? Nope. Probably at the beginning, they will have not enough clients to fill their blocks and they will not pick random tx as that would undo whatever they want to achieve with those "clean" transactions. I thought they were just planning to censor specific transactions, if linked to sanctioned jurisdictions, darknet markets, that sort of thing. Why do you think they would whitelist clients before confirming their transactions? Did they say something to that effect? That seems insanely unprofitable. Unless they specifically said that's their plan, I doubt it. I think they're just hiring a blockchain analysis company who will flag suspicious transactions, which will then be censored from blocks they publish. I expect them to produce full blocks. Title: Re: Marathon Invests $150 Million In Bitcoin Post by: Dutchyyy on January 27, 2021, 11:44:23 PM What I don't like about Marathon is that they are trying to police the transactions and the network as a whole. $150mn in Bitcoin is not a significant amount for such a company, but they set the right voice with the right example to others.
Title: Re: Marathon Invests $150 Million In Bitcoin Post by: MCobian on January 27, 2021, 11:58:11 PM I'm sure most of the members of this forum are not surprised to know this news, because it is very reasonable with the price of Bitcoin which
managed to rise very high this year, many companies are interested in investing in Bitcoin. In fact, not only large investors are starting to be interested in investing in Bitcoin, but small investors with small capital are also enthusiastic about investing in Bitcoin. Currently, the popularity of Bitcoin is unstoppable. This year's $ 100k target is very realistically achieved, if more and more big companies start investing large amounts in Bitcoin. I am glad I trusted Bitcoin before the big companies that are now realizing the potential of Bitcoin. Title: Re: Marathon Invests $150 Million In Bitcoin Post by: BrianH on January 28, 2021, 04:10:18 AM A bitcoin company invests in bitcoin. How is this news?
Title: Re: Marathon Invests $150 Million In Bitcoin Post by: Upgrade00 on January 28, 2021, 04:18:51 AM A bitcoin company invests in bitcoin. How is this news? It's news cause they are choosing to hold Bitcoin in their reserve funds over fiat. The fact that a company is affiliated with Bitcoin such as this doesn't mean they have to trust it as a store of value. Mining is profitable if you have affordable access to electricity and modern equipments, the profit is what attracts most. But holding your reserve funds in Bitcoin is a different level of adoption. Title: Re: Marathon Invests $150 Million In Bitcoin Post by: wheelz1200 on January 28, 2021, 04:18:57 AM A bitcoin company invests in bitcoin. How is this news? I think its the size of the investment. Company's are taking large positions in bitcoin more now than ever. This just being another one. I think that is the story here. Title: Re: Marathon Invests $150 Million In Bitcoin Post by: JoKleinTopper on January 28, 2021, 07:50:17 AM increasing numbers of institutions are investing bitcoin, Marathon is just one of them. It means they saw the profit hidden in bitcoin, hopefully you have some bitcoin. Now I have 0.1 and I will HODL
Title: Re: Marathon Invests $150 Million In Bitcoin Post by: worle1bm on January 28, 2021, 01:20:22 PM Yes I also came across the article and was happy that most of big institutions are now investing large amount in Bitcoins as their reserve assest but they don't think much about the prices as Marathon the largest enterprise Bitcoin self mining company have purchased 4812 Bitcoins worth of $150 million at $31k per btc because they seek it an investment opportunity for longer period as they know it's true power.They know that when the price will rise to say $60k they just double their profits and in turn they are having the most trusted and used decentralised currency of future and they will have digital payment options at ease with security rather than centralized currencies.And with this investment they became only one pure play listed company in Nasdaq excahnge.With this stock prices of company have raised 7% In the market within short span of time as indicated by the graph below:
https://i.ibb.co/6rRykBt/Screenshot-20210128-184557-01.jpg (https://ibb.co/7jJSq4p) It's just a start and we will see many companies investing in btc as it the game changer in the market so hope for the prices to moon soon. Title: Re: Marathon Invests $150 Million In Bitcoin Post by: tbterryboy on January 28, 2021, 05:09:54 PM It’s good that they are investing in Bitcoin even at a time like this that the price has been going down. We know very well that in future the price is going to increase, but we can’t tell when that is going to be, whether it will at a sudden start going back up again or we are going to wait for another three to four years like we did after the 2017 bull run, which is also how it happened after the other bull run before then.
Whichever it is, one thing we know for sure is that the price will always increase more than what it is now, and the lowest price now wouldn’t be the lowest in future. Title: Re: Marathon Invests $150 Million In Bitcoin Post by: teosanru on January 28, 2021, 05:24:17 PM Interesting another big company invests a huge amount in bitcoin. $150 Million means that it purchased around 4900 Bitcoins which is pretty whopping. Now 30000$ is becoming a larger support for Bitcoin. A huge number of institutions have invested huge sums in bitcoin now. I won't be surprised to see a lot of retail investors following the footsteps of institutions too. I think with each day bitcoin is becoming more and more formalized. Bitcoin derivates being listed on a major crypto exchanges will be a big break for us now.
Title: Re: Marathon Invests $150 Million In Bitcoin Post by: Clement Kaliyar on January 28, 2021, 09:41:25 PM They will have liabilities in dollars still, taxes obviously so liquidity is important. A bigger plan so they arent forced into any selling at any time is important, its not so straight forward imo but no doubt they get interest from investors. If the company is readily willing to invest in bitcoin around $150 million rather than purchasing mining equipment's and boost their mining rigs they thought it is much more profitable if they are holding bitcoin for their profit and these companies invest knowing their balance sheets and they are well aware of their taxes and the liabilities and moreover they are listed in the stock exchange.Title: Re: Marathon Invests $150 Million In Bitcoin Post by: CarnagexD on January 28, 2021, 10:10:56 PM Here we go with more and more public companies pumping the coin's price and setting a much higher resistance point than the one we had in the past. This will not allow small-time investors to buy the dip unfortunately because there will never be a dip, these guys flocking in on bitcoin will stabilize the price to a point that it's pointless to invest on bitcoin anymore. Capitalism yet again wins this time, for God's sake.
Title: Re: Marathon Invests $150 Million In Bitcoin Post by: Daltonik on August 04, 2021, 08:54:23 AM A few updates on the production and ownership of BTC by Marathon: for example, only in July 2021, the mining company Marathon Digital Holdings produced 442.2 BTC, increasing its reserves in cryptocurrency to 6225.6 BTC. At the end of the month, the company had about $91.9 million in cash at its disposal. Together with the cryptocurrency, Marathon's total liquidity reached approximately $352.6 million. https://www.globenewswire.com/news-release/2021/08/03/2273688/0/en/Marathon-Digital-Holdings-Announces-Bitcoin-Production-and-Mining-Operation-Updates-for-July-2021.html
By month, the number of bitcoins extracted by Marathon is as follows: January 2021: 50.4 BTC February 2021: 43.4 BTC March 2021: 97.9 BTC April 2021: 162.1 BTC May 2021: 226.6 BTC June 2021: 265.6 BTC July 2021: 442.2 BTC Title: Re: Marathon Invests $150 Million In Bitcoin Post by: stompix on August 04, 2021, 04:35:43 PM Quote Yesterday, we announced that we purchased an additional 30,000 miners from Bitmain. As a result, we now expect our mining fleet to consist of 133,000 miners generating 13.3 EH/s at full deployment. Somebody is pumping money into miners like there is no tomorrow, how much funding they have secured to pay upfront for 100k miners deliveries over a year, halfway through add another 30k order despite the huge rise in mining gear prices and on top of that: Quote As a result, Marathon currently holds approximately 6,225.6 BTC, including the 4,812.66 BTC the Company purchased in January 2021 for an average price of $31,168 per BTC. No selling for operational cost, and even more BTC purchases. They hold roughly 240mils in BTC and around 100$ million at least in equipment, plus the facilities, that's a lot of money. And the cherry on top is that this is Mara and their 2Exa, Foundry (DCG) has another 7Exa, from Chinese farms we're switching to corporate mining. ;D Title: Re: Marathon Invests $150 Million In Bitcoin Post by: Daltonik on August 05, 2021, 01:30:50 PM Fidelity is buying a 7.4% shares in the mining company Marathon Digital Holdings, Forbes reported According to the publication, the transaction amount was approximately $20 million. Fidelity Investments was included in the list of the largest shareholders of Marathon Digital Holdings along with Vanguard Group (7.58%), Susquehanna (2.7%) and Blackrock (1.59%). https://www.forbes.com/sites/anthonytellez/2021/08/04/fidelity-buys-74-of-bitcoin-mining-company-marathon-digital-holdings-across-multiple-funds/?sh=a99e83326f2c
Title: Re: Marathon Invests $150 Million In Bitcoin Post by: Kong Hey Pakboy on August 05, 2021, 02:02:43 PM Here we go with more and more public companies pumping the coin's price and setting a much higher resistance point than the one we had in the past. This will not allow small-time investors to buy the dip unfortunately because there will never be a dip, these guys flocking in on bitcoin will stabilize the price to a point that it's pointless to invest on bitcoin anymore. Capitalism yet again wins this time, for God's sake. Well, if they've bought already back when a lot of negativity was in the market then they wouldn't be worried too much now because they're already set and good to go even if the prices go up since they have a hoard of bitcoin already.Title: Re: Marathon Invests $150 Million In Bitcoin Post by: The Sceptical Chymist on August 05, 2021, 03:28:52 PM I had to refresh my memory of Marathon, since this thread seems like it was started longer ago than it actually was. They're on my stock watchlist, but I haven't been looking at that very often. Anyway, I thought they might have been taking on a lot of debt, but the data up until Q1 2021 doesn't show anything of the sort. They could have borrowed money to finance all of those new miners, but they haven't released their Q2 report yet, so who knows.
Somebody is pumping money into miners like there is no tomorrow, how much funding they have secured to pay upfront for 100k miners deliveries over a year, halfway through add another 30k order despite the huge rise in mining gear prices and on top of that: That is a lot of miners! I guess they're all located in Montana and North Dakota, both big states (and with cool climates, as I think I posted previously); I'd love to see pictures of their facilities. Marathon's stock is on my watchlist for a reason--I don't have any cash to invest right now, but they are a profitable company with a P/E of 44.75 (which is pretty high, but that's "normal" for a growing tech company) and I'm thinking about investing in some bitcoin/crypto-related companies once I do get some dough. Marathon seems like a no-brainer, since their basic business model is mining bitcoin, which is kind of a simple one. Assuming the price of bitcoin stays high--and that's never guaranteed, I know--Marathon might be a pretty good investment. Title: Re: Marathon Invests $150 Million In Bitcoin Post by: lixer on August 05, 2021, 07:48:44 PM Fidelity is buying a 7.4% shares in the mining company Marathon Digital Holdings, Forbes reported According to the publication, the transaction amount was approximately $20 million. Fidelity Investments was included in the list of the largest shareholders of Marathon Digital Holdings along with Vanguard Group (7.58%), Susquehanna (2.7%) and Blackrock (1.59%). https://www.forbes.com/sites/anthonytellez/2021/08/04/fidelity-buys-74-of-bitcoin-mining-company-marathon-digital-holdings-across-multiple-funds/?sh=a99e83326f2c That puts their valuation at 270 million, why did Marathon agreed to something like that? These guys have 352 million dollars with cash+bitcoin holdings, they already have more than that amount, selling 7.4% for 20 million makes no sense at all, they could have sold some bitcoins and cover that difference as well, it makes zero sense. I understand that they want to grow the company and that is why without selling anything, getting some more money and using that to buy some machines or buy some bitcoin would mean that the company will grow bigger, so it makes sense for the company itself, but it makes zero sense for the owners of the company who now sold a piece of their company for under what the real valuation for that company really is. If I had 20 million dollars and knew that this was the offer on the table, I wouldn't hesitate one second for buying it, you are in instant profit as soon as you buy it. Title: Re: Marathon Invests $150 Million In Bitcoin Post by: The Sceptical Chymist on August 05, 2021, 09:45:21 PM That puts their valuation at 270 million, why did Marathon agreed to something like that? These guys have 352 million dollars with cash+bitcoin holdings, they already have more than that amount, selling 7.4% for 20 million makes no sense at all, they could have sold some bitcoins and cover that difference as well, it makes zero sense. If you read the article, it looks like Fidelity bought shares on the open market--just like any investor can do. Marathon didn't sell part of the company to Fidelity, if that's what you're thinking. I don't see anything in the article that says otherwise.However, the numbers don't add up with the current stock price of $31.62, because $20m wouldn't buy 7.4% of the company at that price. Fidelity must have purchased the shares at a much lower price, and the article didn't say when that purchase occurred. Maybe it was before January, when the price was $10-14/share? Here's a price chart for MARA (courtesy of Yahoo Finance): https://i.imgur.com/oci0eJe.png Edit: But, apart from that, what has always surprised me is that people would rather own a fund that owns bitcoin instead of takin 1 hour of their time to open a wallet and get some bitcoin from an exchange or from somebody. It is just stupid, because with gold or silver or copper or any commodity, you obviously cannot keep it at home, at least not in large quantities or without worries, but bitcoin does not occupy space. I don't think it's stupid, because owning stock in Marathon basically gives an investor exposure to bitcoin and bitcoin mining in a way that's easy to do (you just buy the stock). Yeah, for people who know a lot about crypto already it might seem silly, but the average person probably doesn't want the hassle of keeping their coins secure, etc., and they sure as hell aren't going to get into mining easily--even if they wanted to. Plus, with the Fidelity mutual funds that now own MARA stock, people can have that bitcoin exposure reflected in their retirement accounts. Title: Re: Marathon Invests $150 Million In Bitcoin Post by: paxmao on August 05, 2021, 09:48:22 PM There is obvious market interest in bitcoin, perhaps too much and too quick as most of the mainstream investors are not familiar with the ups and downs of bitcoin and how quickly fortunes are made and lost in crypto. But, apart from that, what has always surprised me is that people would rather own a fund that owns bitcoin instead of takin 1 hour of their time to open a wallet and get some bitcoin from an exchange or from somebody. It is just stupid, because with gold or silver or copper or any commodity, you obviously cannot keep it at home, at least not in large quantities or without worries, but bitcoin does not occupy space.
Title: Re: Marathon Invests $150 Million In Bitcoin Post by: just_Alice on August 05, 2021, 11:36:36 PM It’s no wonder that MARA has made this Bitcoin purchase, and they will not give it up, hopefully. By this act, the company encourages institutional investment, which is in their best interest. Considering the future halvings and what the company puts at stake, they should make damn sure that the price will keep growing in the nearest future.
I wonder if this will increase MARA volatility, though, as it already is pretty volatile. Is buying stocks now a bad idea? :D Title: Re: Marathon Invests $150 Million In Bitcoin Post by: Liamttw on August 06, 2021, 07:39:13 AM The popularity of Bitcoin is unstoppable. Many institutions are participating in investing in Bitcoin. The market sentiment is positive and the price is on an upward trend.
They reached an agreement with an energy supplier to obtain very cheap electricity and can buy a large amount of Bitcoin at a low price. On the other hand, it bought miners and could get more bitcoins. https://bitcoinmagazine.com/business/marathon-120-million-30000-bitcoin-miners (https://bitcoinmagazine.com/business/marathon-120-million-30000-bitcoin-miners) https://i.loli.net/2021/08/06/gl17uANSh4LviCt.png Title: Re: Marathon Invests $150 Million In Bitcoin Post by: jaberwock on August 06, 2021, 08:52:35 AM Bitcoin is adopted by yet another public company, this time it's a pure-play investment option. Another company? But, I read they are already based on blockchain technology and more particularly they are into bitcoin mining hence in my opinion this cannot be categorized as a big news in bitcoin community like a company which is newly getting into bitcoin and investing $150 millions. Yeah, they are already into bitcoin related business and just extending for the worth of $150 millions unlike what we have seen some other companies are investing 10x more than this and those companies are completely new to crypto world.Anyhow, I must welcome all the investments made into bitcoin ecosystem for whatever business purposes because which are eventually leading bitcoin to achieve its target price levels of $1 Billion (not million) in long run ;). Title: Re: Marathon Invests $150 Million In Bitcoin Post by: tygeade on August 06, 2021, 08:28:41 PM The interest in Bitcoin will not stop growing. And I believe with time we are going to reach a really high level. A lot of companies are going to be rushing towards it this time, as they will be trying to buy now than later. After the price has reached $60,000 and dropped to $30,000 a lot of institutions are going to see it as an opportunity to start buying lots of bitcoins before there is another bull run that will push the price to a level that is more than this that we have had as of recent.
There are even many that might have invested in Bitcoin and even different other cryptocurrencies that we might not know yet, with time we will get to know about them. And more institutions are still coming. Title: Re: Marathon Invests $150 Million In Bitcoin Post by: jaysabi on August 08, 2021, 05:18:32 AM This was a penny stock before the price of bitcoin sent crypto mining companies through the roof. Do your homework on this, this isn't a company I'd invest in personally. I believe it when you're telling me it was a penny stock--and they did do a few reverse splits if I'm interpreting the data correctly. I always get confused if 1:4 is a one share-->four shares split, or if it means the opposite. I assumed in the case of Marathon that they were reverse splits given that there was no justification for a traditional split, as the stock price was nowhere near high enough. I'm not really interested in the company and don't plan to research it further, but I do want to track its progress as I do with a few other blockchain-oriented companies or ones like MSTR that own tons of BTC. A 1:4 split is a reverse split, so for every 4 shares you owned you will now own 1 share. The point is to reduce the share count and increase the price. If you had 4 shares worth 1 dollar each ($4 total), after a 1:4 reverse split you would have 1 share worth 4 dollars. The market cap remains the same, so the price undergoes the same change as the share count. Usually, reverse splits are a sign of distress in a company. It's commonly done by companies whose price has fallen below the minimum threshold to be listed on an exchange, and a reverse split boosts the stock price in order to be able to remain listed on the exchange. Those instances are clear red flags. Title: Re: Marathon Invests $150 Million In Bitcoin Post by: oHnK on August 08, 2021, 12:27:44 PM Usually, reverse splits are a sign of distress in a company. It's commonly done by companies whose price has fallen below the minimum threshold to be listed on an exchange, and a reverse split boosts the stock price in order to be able to remain listed on the exchange. Those instances are clear red flags. It is true that a reverse stock split will form a negative market perception because it is true that this action secures the value of the stock because the price continues to decline so that it can only hold old investors while new investors will not be easily attracted to the company's shares. Title: Re: Marathon Invests $150 Million In Bitcoin Post by: The Sceptical Chymist on August 08, 2021, 06:49:04 PM A 1:4 split is a reverse split, so for every 4 shares you owned you will now own 1 share. The point is to reduce the share count and increase the price. If you had 4 shares worth 1 dollar each ($4 total), after a 1:4 reverse split you would have 1 share worth 4 dollars. Yes, I know what a reverse split is and the significance of them--what I obviously didn't get across was that the way the split is presented (1:4 or 4:1) always confuses me. That's just a thing with me, always has been, probably always will be.I didn't realize I'd posted this previously here: It's nice that they bought all of that bitcoin, but they're a stock I wouldn't touch with a ten foot pole. Now I'm thinking that they might be a decent company worth investing a few bucks into their stock--if I had a few bucks to play around with, which I currently do not. Despite the relatively high P/E, they actually do make a profit. That's saying something in the realm of tech stocks, where most companies operate at a loss and many never will make a penny of profit. Title: Re: Marathon Invests $150 Million In Bitcoin Post by: goldade on August 10, 2021, 06:53:42 AM One of the most effective ways bitcoin would be widely accepted in the mainstream world is when big companies, who have built their reputation over time, believe in bitcoin and invest in it. This makes the public's trust in bitcoin and cryptocurrencies at large grow tremendously.
Trust me, this move by Marathon would cause a lot of people adopt bitcoin. It wouldn't be long before others follow suit |
