Marathon’s Recent Moves: A Quick Look at the Leading Mining Company
The Bitcoin 2024 Conference officially kicked off on July 25, with the first day’s agenda focusing on BTC mining. As a leading Bitcoin mining company, Marathon Digital has been attracting significant investor attention.
Recently, the company has been making numerous moves that have become industry hotspots. This article provides a quick overview of Marathon Digital’s latest strategies in key areas such as increasing Bitcoin holdings and incubating Layer 2 solutions.
1. About Marathon Digital
Marathon Digital, formerly known as Marathon Patent Group Inc., transformed from a patent acquisition company to a digital asset mining firm in 2013. This shift marked a significant change in business direction and demonstrated its ambition in the emerging cryptocurrency field.
Today, MARA is one of the largest Bitcoin mining companies and one of the largest Bitcoin holders among North American listed companies.
Marathon Digital’s business model involves self-operated Bitcoin mining, purchasing mining machines, and deploying mining farms. Its profit model relies solely on improving BTC mining efficiency and value appreciation, resulting in high leverage and a strong correlation between its revenue and Bitcoin’s price.
This high leverage means that MARA can effectively reflect BTC’s bull and bear cycles. According to Glassnode, the Bitcoin hash ribbons indicator is recovering from months of “capitulation,” signaling a positive shift in miner sentiment and price momentum.
Additionally, Bitcoin’s halving events significantly impact mining companies’ profitability and market trends, making continuous attention to mining companies essential for understanding Bitcoin’s macro cycles.
2. Marathon’s Recent Moves
Bitcoin Holdings: Accumulating Core Assets
One of Marathon Digital’s key strategies in Bitcoin mining is its long-term holding approach. As of July 25, MARA has purchased $100 million worth of Bitcoin, increasing its holdings to over 20,000 BTC, approximately $1.3 billion, close to 0.1% of the total supply.
MARA’s CFO Salman Khan did not disclose the specific purchase time and average price. However, Bitcoin financial data shows that MARA held 18,536 BTC at the end of June, suggesting that the recent purchase involved around 1,500 BTC, priced between $54,000 and $68,000.
Marathon Chairman and CEO Fred Thiel stated, “Adopting a comprehensive HODL strategy reflects our confidence in Bitcoin’s long-term value. We believe Bitcoin is the best reserve asset in the world and support the idea of sovereign wealth funds holding Bitcoin. We encourage governments and enterprises to hold Bitcoin as a reserve asset.”
Marathon Digital’s Bitcoin holding strategy is a reflection of its long-term investment philosophy. By continuously purchasing Bitcoin, MARA not only strengthens its balance sheet but also provides a safety cushion against future market volatility.
This strategy underscores its firm belief in Bitcoin’s long-term value growth while providing stable income sources during market downturns.
Kaspa Mining: Diversifying Asset Portfolio
Kaspa, a POW public chain based on the GhostDAG protocol, offers a more energy-efficient mining process compared to Bitcoin. Since May 2023, MARA has been evaluating Kaspa as a potential addition to its asset portfolio.
After successfully deploying the first batch of Kaspa ASICs in September 2023, MARA expanded its operations, purchasing approximately 60 petahash of KS3, KS5, and KS5 Pro ASICs. According to ASIC Miner Value, the profit margin per ASIC can reach up to 95% under current network difficulty and KAS prices.
As of June 25, 2024, Marathon had mined 93 million KAS, worth about $15 million.
Marathon Chief Growth Officer Adam Swick stated, “Mining Kaspa creates a diversified income source different from Bitcoin and brings core competitiveness in digital asset computation. With our existing infrastructure, unique relationships with hardware manufacturers, strong balance sheet, and team expertise, Marathon has a unique advantage in mining Kaspa for higher profits.”
Anduro Incubation: Deepening Ecosystem Development
Anduro, a Bitcoin sidechain platform incubated by Marathon Digital, operates independently from MARA. The Anduro sidechain uses Bitcoin’s proof of work as its consensus mechanism through a process called merged mining, which requires no additional power consumption.
Marathon Digital believes that maintaining miner incentives, attracting innovators, and increasing transaction volume through Bitcoin’s application layer are crucial. Anduro aims to create an appropriate Bitcoin application layer, addressing miner incentives while enhancing Bitcoin’s functionality and appeal. The platform comprises three key components: Collective, the sidechain, and sidechain-native assets.
Marathon Chairman and CEO Fred Thiel stated, “Anduro could introduce new fee revenue sources, enhancing Marathon’s growing technology stack. Additionally, by expanding Bitcoin’s functionality, Anduro could increase Bitcoin adoption, driving the entire Bitcoin ecosystem forward.”
Anduro sidechain product leader Julian Duran emphasized during his speech at the Bitcoin 2024 Conference on July 26, “Cross-border payments are blockchain’s biggest use case, especially for Bitcoin.
In emerging markets, the average cost of remittances is 8% to 10% of transaction value, with settlement taking 3-4 days. In contrast, Bitcoin transfers typically complete in 10 minutes, with Layer 2 solutions potentially being faster.”
Duran also stressed the importance of strict regulatory compliance for successful payment solutions, which might increase costs. In emerging markets, regulatory approval is often quicker and cheaper, as local governments and regulators seek better cross-border payment solutions.
Currently, Anduro has integrated Portal to Bitcoin, allowing users to convert assets like ETH to BTC via atomic swaps (peer-to-peer cryptocurrency transactions). According to Cointelegraph, “cross-border BTC payments are Anduro’s top priority.”
Marathon Digital is collaborating with blockchain developers to build Bitcoin L2 cross-border payment solutions. Besides payments, Marathon is also exploring real asset tokenization plans, including tokenizing whiskey barrels in the U.S. and partnering with a platform to protect French castles.
MOEP Collaboration: Sustainable Development
At the end of May this year, Bitcoin miner Marathon Digital announced a renewable energy project collaboration with Kenya, leading to a 5% increase in MARA’s stock price.
According to a joint statement, the two parties will establish a committee responsible for guiding the development and implementation of all energy-related projects.
Conclusion
Marathon’s recent moves in asset accumulation, technological innovation, ecosystem development, and energy efficiency management showcase its strength and foresight as a mining industry leader.
According to the latest Factset survey, MARA’s EPS estimate has been raised to $0.65, with a target price of $22.50. As the Bitcoin mining industry continues to mature and global hash power redistributes, MARA is poised to maintain its leading position.