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.
Topic: Marathon Invests $150 Million In Bitcoin - page 2. (Read 511 times)
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:
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.
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.
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
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.
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.
A bitcoin company invests in bitcoin. How is this news?
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.
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.
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.
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?
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.
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?
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!
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, 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.
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, 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.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?
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.
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.
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!
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?
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
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
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
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:
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!
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!
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.
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.
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.
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.
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.
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.
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, 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.
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.
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.
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