cryptovibes.com
The latest reports indicate that Marathon Patent Group has invested nearly $150 million in the Bitcoin market as a reserve asset. The Nevada-based crypto firm is the latest to join the race of institutional adoption which started sometime last year. Since then, the number of institutional investors putting their money in crypto has been on the rise.
Some analysts and commentators believe that the Covid-19 pandemic escalated the rate of institutional adoption in some way. But, Bitcoin holds good purchasing power and it might be what has triggered the rise.
On January 25, 2021, Marathon Patent announced that it has acquired more than 4812 Bitcoin (BTC) worth $150 million. Marathon Group has made that purchase through the New York Investment Group at an average of $31,168 per coin.
According to CEO and Chairman, Merrick Okamoto, investing in bitcoin is a better long term strategy than holding US dollars. He compared the biggest independent publicly-traded intelligence company, MicroStrategy, which had made an initial $425 million crypto investment in mid-year 2020. Since then, it has acquired more than $650 million worth of coins by the end of 2020. Merrick Okamoto said:
‘By purchasing $150 million worth of Bitcoin, we have accelerated the process of building Marathon into what we believe to be de-facto investment choice for individuals and institutions who are seeking exposure to this new asset class.’
What Does Marathon Patent Group Aim For?
The Nevada-based firm started to expand its operations significantly last year. Reports indicate that this company aims to become the largest Northern American Bitcoin mining pool. In that context, Marathon installed Whatminer M30s + ASICs back in June 2020. Furthermore, the company acquired more than 10,000 Antminer S19 rigs in October 2020.
Okamoto has revealed that the company plans to have more than 100,000 miners fully deployed by the end of the first quarter of 2022. Okamoto said:
‘If all miners were operational today, based on the Bitcoin networks current difficulty rate, we should produce approximately 55-60 bitcoins per day.’
Moreover, the CEO highlighted that investing in Bitcoin now will transform his company’s potential to be a major investment into a reality. He added:
‘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.’
Bitcoin made a major correction last week, with its price plunging below the $30,000 level. Many investors have taken advantage of the consolidation phase, including Marathon, to acquire some coins awaiting the bull run to continue towards $50,000.
The crypto mining firm bought the dip while Bitcoin’s price was oscillating below $32,000 levels.