Marathon BTC Mining Firm Just Purchased $150 Million In Bitcoin

The Marathon BTC mining firm has just purchased $150 million in Bitcoin and had its stock rise by 7%, as we are reading more in today’s crypto news.

The stocks of the crypto mining company Marathon Patent Group increased by 7.7  percent in pre-market hours and especially it purchased $150 million worth of BTC. The surge added to the company’s 2800% stock rise over the past year from $1 to over $28 in the first week of this month. This move was in tandem with Bitcoin’s own price jump from below $4500 in May 2020 to over $41000 in December last year.

Marathon Patent Group, Inc. (NASDAQ:MARA) ("Marathon") today announced that it has purchased 4,812.66 BTC in an aggregate purchase price of $150 million via @NYDIG_BTC. Another public company adopts #Bitcoin as a treasury reserve asset. https://t.co/acwghygNxC

— Michael Saylor (@michael_saylor) January 25, 2021

Marathon’s stock jump is close to how the traditional market traders reacted to the technology company Microstrategy and Square announcing their own BTC purchase in 2020 with the stocks of both companies jumped by a few percent right after they made their purchases public. That happens usually when accredited market participants cannot hold BTC directly and instead had to resort to either BTC futures which is a speculative bet on the asset’s price movements or companies like Marathon that conduct business in the crypto space to profit from the upside of Bitcoin’s price.

In the meantime, Marathon CEO Merric Okamoto said that the purchase of BTC was to hedge against the crashing US dollar. He said:

 “We believe that holding part of our Treasury reserves in Bitcoin will be a better long-term strategy than holding US Dollars.”

Overall, the company picked 4,812 BTC with the mining player still being on track to receive over 103,060 mining machines that can perform thousands of calculations every second to maintain the network which will eventually be used to expand its business. In the meantime, BTC jumped over 7% and is trading at $34K as of the time of writing.

Speaking of BTC, The flagship cryptocurrency attracted sellers right when it established a fresh record higher than $42,000. The price then dropped by 31.57% and recovered due to the strong buying sentiment at key psychological levels around $30K. The latest weekend session was supposed to protect the long-term bullish bias so the traders started buying bitcoin immediately which led the coin to a new drop of around $30,931. The price retraced back above $33K in the early Monday session making the ninth downside rejection since the beginning of January.