Bitcoin Mining Giant Buys $100 Million Worth of BTC Amid Price Plunge

Cryptocurrency mining giant Marathon Digital giant has announced the acquisition of $100 million worth of Bitcoin (BTC). 

Marathon Digital CEO Fred Thiel said that the company intended to go "full HODL," which means that the company intends to retain all of its mined coins while also making additional purchases on the open market. The strategy is supposed to show the company's confidence in its long-term value, according to Thiel.

The company believes that governments as well as corporations should consider holding Bitcoin as a reserve asset.

MicroStrategy CEO Michael Saylor has commented on Marathon Digital's recent purchase, adding that every company should have a strategic Bitcoin reserve.

According to data provided by Bitcoin Treasuries, Marathon Digital is the second-largest corporate holder of Bitcoin (behind only MicroStrategy). 

E-car manufacturer Tesla as well as Hut 8 and Riot Platforms, two other major mining companies, are also in the top five when it comes to their Bitcoin holdings. 

Marathon Digital's purchase announcement came amid a severe market rout. Earlier today, the price of Bitcoin dipped below the $64,000 level. The cryptocurrency is trading at $63,902, according to CoinGecko data. However, its market dominance has increased substantially due to altcoins suffering from even steeper losses. Ethereum is down more than 8% despite the launch of much-anticipated spot ETFs. 

According to a recent report by investment bank Jeffries, Bitcoin mining profitability experienced an increase last month, with the hashrate declining by 5%. Miners had a much-needed respite after their bottom line was hit by the recent halving event. Many Bitcoin miners are now trying to capitalize on the artificial intelligence (AI) craze as a way to cope with declining profits.

Earlier this month, Marathon reported that it had mined 590 Bitcoins last month, which represents a 40% year-over-year drop in production.