Marathon $23 Million Contract with Bitmain to Purchase 10,500 S-19 Pro Miners

[Baofeng]

Another bullish sign?

It's not that only big companies like Grayscale and MicroStrategy are buying or investing in bitcoin. But there seems to be a trend as well, getting into bitcoin mining. As Marathon Patent Group (MARA), became  one of the first Nasdaq-listed Cryptocurrency mining company announces a $23 Million Contract with Bitmain to Purchase 10,500 S-19 Pro Miners.

Marathon Patent Group, Inc. (NASDAQ:MARA) ("Marathon" or "Company"), a Nasdaq-listed cryptocurrency mining company, today announced that it has entered into a Long Term Purchase Contract with Bitmain for the purchase of 10,500 next generation Antminer S-19 Pro ASIC Miners.

Marathon’s Chief Executive Officer, Merrick Okamoto, stated, “The execution of this contract with Bitmain represents a milestone event for our company. This investment is expected to result in Marathon being one of, if not the largest, Bitcoin miner in North America.”

Okamoto continued, “Today’s news comes on the heels of recent incremental business growth through the purchase of what now is expected to total 13,520 next generation miners generating 1.55 Exahash upon full installation. I would like to take this opportunity to thank Bitmain for working with us on this Long Term Purchase Contract, which locks in the purchase price, a substantial discount from the current retail price, and greatly reduces the risk of price increases to the Company and potential shortage of Miner availability in the future.”

"We are pleased to have provided Marathon with Bitmain’s latest generation of Antminer S19 Pro mining hardware. Equipped with the most advanced chipset currently available, the high-performance and low power consumption of the miners will significantly improve operations of Marathon's mining business. This collaboration continues to strengthen our cooperation and will extend to future work together as Marathon expands its presence in the mining industry,” said Irene Gao, Antminer Sales Director of NCSA Region, Bitmain.

Additionally, 1,360 Miners were delivered to our Hosting Facility today, and the Company anticipates that all of these Miners will be deployed this weekend and added to our current 700 Miners presently in operation, bringing our currently installed Miners to 2,060 which will produce 184.6 PH/s. Bitmain will also deliver 500 previously purchased S-19 Pro Miners in September and 500 in November. After the installations this weekend go operational next week, the Company’s yields are expected to generate prospective positive net cash flow, based on the current price of Bitcoin and Hashrate difficulty.

https://www.globenewswire.com/news-release/2020/08/14/2078514/0/en/Marathon-Patent-Group-Announces-23-Million-Contract-with-Bitmain-to-Purchase-10-500-S-19-Pro-Miners.html

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[avikz]

I don't know why but the share price of Marathon Patent Group has been falling since last 5 straight days. It is now 8.33% down at 3.41 usd per share. Even though bitcoin price is gradually increasing over the last couple of weeks, the mining company is loosing value fast!

However, as per the general business sense, their share price should have skyrocketed because of their contract with Bitmain. The reason for order 23 million usd worth of mining equipment means, they are scaling up their production but the mainstream stock market reacted in an opposite way.

It's definitely a bullish sign for bitcoin but not sure why their share price is falling.

[so98nn]

I don't know why but the share price of Marathon Patent Group has been falling since last 5 straight days. It is now 8.33% down at 3.41 usd per share. Even though bitcoin price is gradually increasing over the last couple of weeks, the mining company is loosing value fast!
[...]

It was down to -11% for 5 day average. However, this won't be much harmful for this type of company considering it's 1 month of capital gains hitting to 261% on an average. I would say 11% downtime is just time to buy more stocks for it's investors. (NASDAQ:MARA)

Daily price is fluctuating in between 3.25 to 3.67 which is more or less very stable price change. Once the mining gets expanded to another level they will have more liquidity in their funds and that would be the time when their investment will be tested!

[amishmanish]

I don't know why but the share price of Marathon Patent Group has been falling since last 5 straight days. It is now 8.33% down at 3.41 usd per share. Even though bitcoin price is gradually increasing over the last couple of weeks, the mining company is loosing value fast!
[...]

It was down to -11% for 5 day average. However, this won't be much harmful for this type of company considering it's 1 month of capital gains hitting to 261% on an average. I would say 11% downtime is just time to buy more stocks for it's investors. (NASDAQ:MARA)

It was less than a dollar on 23/07 and is now at ~3.4 USD from a high of 5 USD. Quite a significant jump but if you see the overall chart, it had once been around 40-50 USD. Whether this historical high is of any significance considering that that was back in 2016 and the cryptocurrency landscape has changed a lot since then.

The company has a mixed history. They were a patent acquistion and monetization company that have filed patent infrignment lawsuits against the likes of Samsung and Apple. It was only in 2018 that they pivoted to blockchain by acquiring Global bit ventures. Since then, they have been completely focussed on buying miners and setting up the facilites. The patent acquisition part isn't really visible anymore. They are an experienced bunch and this new agreement just goes to show that they are committed to this for the long term.