Odaily Frontline｜Marathon Patent Group, a listed mining company, bought about $150 million in Bitcoin

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2021-01-25 14:08

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This is the first time the company has purchased Bitcoin from the market, and the purchase price is about 31,135 US dollars.

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Summary:

Summary:
Publicly traded company Marathon Patent Group bought about $150 million worth of bitcoin.

Marathon Chief Executive Merrick Okamoto said the purchase was financed from the company's cash reserves.Marathon Patent Group, Inc., a Nasdaq-listed company and one of the largest bitcoin mining companies in North Americaannounced on monday

, the company has purchased about 4,813 bitcoins, worth about $150 million.

Merrick Okamoto, chief executive of Marathon Patent Group, said the purchase was financed from the company's cash reserves. This is the first time the company has purchased bitcoins from the market, which is itself engaged in bitcoin mining.

It is reported that Marathon's stock has risen 892% in the past year, MicroStrategy's stock has risen 166%, while Bitcoin has risen by about 300%.

Earlier this month,Earlier this month,Marathon raises $250 million in an equity funding round

. Asked whether the funds were being used to buy bitcoin, Okamoto said that prior to the financing, the company had $425 million in cash that could be used to buy bitcoin.

Crypto financial services firm NYDIG helped execute the deal. NYDIG said the purchase was completed on Jan. 21, adding that the purchase amount was approximately $31,135 per bitcoin.NYDIG said the order was completed "in just a few hours" from conception to execution. Last month, the company alsoHelping insurance giant MassMutual buy $100 million worth of bitcoin

, MassMutual also acquired a $5 million minority stake in NYDIG at the time.

As for Marathon Patent Group, the company has been mining bitcoin since late 2017. Okamoto said the 2,560 bitcoin mining machines run by the company are currently producing about 1.5 to 2 bitcoins per day.In order to expand its business, Marathon recently ordered batches of 100,500 advancedS19 series mining machine. The company has signed a contract to purchase a total of 103,060 mining machines so far, and it is expected that the undelivered mining machines will eventuallyDelivered and fully deployed by end of Q1 FY22

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Marathon official websiteMarathon believes it is uniquely positioned for long-term success because of its recentFormation of a joint venture with Beowulf Energy

, to provide cheap electricity for its bitcoin mining facilities.

“Most Bitcoin miners operate on a colocation model. The cost of this colocation operation is typically $0.05-$0.06 per kWh.” Partnering with Beowulf will help Marathon reduce costs to $0.028 per kWh, This will also reduce the cost of mining per bitcoin from more than $7,700 to about $4,400.