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.
Topic: Marathon Invests $150 Million In Bitcoin - page 3. (Read 511 times)
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.
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.
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.
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:
....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.
....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).
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:
....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.
....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.
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.
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.
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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.
@ 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.
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.
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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:
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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.
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“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.
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