Marathon Digital buys Bitcoin and recommends it as a reserve asset

Marathon Digital, the Bitcoin mining company or - as it describes itself in the press release - "a global leader in using digital computing power to support the energy transition", has announced that it has purchased 100 million US dollars worth of Bitcoin. This means that Marathon now owns more than 20,000 Bitcoin.

Michael Saylor, co-founder and head of MicroStrategy - the company that is already implementing a comprehensive Bitcoin strategy and already owns more than one percent of all Bitcoin ever in existence - commented derisively on Marathon's Bitcoin purchase. He raised the question of whether Marathon CEO Fred Thiel shouldn't own "26.2k Bitcoin" based on the company name alone, alluding to the marathon distance of approximately 26.2 miles (approx. 42 km).

Marathon could soon reach 26,200 Bitcoin on its balance sheet, and not just because Fred Thiel replied to Saylor's question that it could well think about it. Because, as the company has announced, it is once again pursuing a "full HODL strategy". This means that it now retains all BTC from mining activities and intends to make regular strategic purchases to increase its holdings.

The reintroduction of our full HODL strategy reflects our confidence in the long-term value of Bitcoin.
_{Fred Thiel, Chairman and CEO of Marathon Digital}

The reason for these strategic changes is the increasing institutional support and an improving macroeconomic environment for Bitcoin, explained Salman Khan, CFO of Marathon Digital.

The recent decline in the price of Bitcoin, coupled with the strength of our balance sheet, has given us the opportunity to increase our holdings. We look forward to continuing to apply our technological expertise in support of Bitcoin and decentralized digital asset ecosystems.
_{Salman Khan, CFO of Mar}athon Digital

The confidence in the long-term value of Bitcoin is also reflected in the company's recommendation to hold BTC as a reserve asset.

We believe that Bitcoin is the best reserve currency in the world and support the idea of sovereign wealth funds holding Bitcoin. We encourage governments and corporations to hold Bitcoin as a reserve currency.
_{Fred Thiel, Chairman and CEO of Marathon Digital}

With the Jersey City pension fund and the Wisconsin state pension fund, there are already state pension funds that have invested in the asset. The Marathon CEO's comments also appear to relate to the recent speculation surrounding the use of Bitcoin as a US reserve asset. This was fueled earlier this month by a Forbes article that discussed statements from high-ranking US politicians such as Donald Trump, Vivek Ramaswamy, Robert F. Kennedy Jr. and Cynthia Lummis that hinted at such a major move by the US.

This discussion has now moved further into the mainstream. The speeches by Donald Trump and Cynthia Lummis on Saturday at the Bitcoin conference currently taking place in Nashville are eagerly awaited. This could be the first time that concrete and realistic plans for such a strategy are announced by the likely next US president.