Marathon Invests $150 Million In Bitcoin

[paxmao]

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.

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[just_Alice]

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?

[Liamttw]

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

[jaberwock]

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 .

[tygeade]

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.

[jaysabi]

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.

[oHnK]

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.

[The Sceptical Chymist]

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. 

[goldade]

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