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
Topic: Marathon Invests $150 Million In Bitcoin (Read 511 times)
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. 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.
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.
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.
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.
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
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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
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
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?
I wonder if this will increase MARA volatility, though, as it already is pretty volatile. Is buying stocks now a bad idea?
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.
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):
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. 
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.
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.
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.
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.
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.
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
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.
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
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
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.
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.
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.
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.
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.
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