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Marathon Digital Sells Mined Bitcoin for the First Time in Two Years, Isn’t Fueled by Duress

Published 02/03/2023, 06:30 AM
Updated 02/03/2023, 08:00 AM
© Reuters.  Marathon Digital Sells Mined Bitcoin for the First Time in Two Years, Isn’t Fueled by Duress
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Marathon Digital sold 1,500 BTC in January, the first time the Bitcoin miner sold in more than two years, but confirms the sale was not the result of being under financial distress.

Marathon Digital Sells 1,500 Bitcoin (BTC)

In its latest update, Marathon Digital, the second-biggest publicly listed holder of BTC, announced that the company sold 1,500 BTC, worth $35.3 million at current prices in January.

Charlie Schumacher, Marathon’s Vice President of Corporate Communications, said the company did not offload its Bitcoin because it was under any form of financial duress.

He adds that Marathon did not want to sell its mined Bitcoins while production was done. CEO Fred Thiel said that Marathon sold BTC to cover some “operating expenses and for general corporate purposes.”

Marathon Digital is Changing Operations

As per the statement, Marathon Digital now holds a total of 11,418 BTC. However, the company is planning on taking a different route toward portfolio management.

Charlie Schumacher explained that Marathon aims to build a “war chest” of liquidity composed of cash and Bitcoin. This will help the company continue to pay down debt and increase its cash position.

On the Flipside

  • Schumacher adds that Bitcoin’s recent rally contributed to the decision to sell some of its holdings. Bitcoin now trades at $23,000.

Why You Should Care

Marathon Digital remains a diamond hand holding Bitcoin, and sales were only intended to help fund the firm’s operations.

Read about the struggles of Bitcoin miners below:

Bitcoin Miner Core Scientific Files for Bankruptcy, Continues Mining while Repaying Debt Holders

Troubled Miner Argo Blockchain to Reduce Debt by $41 Million by Selling Helios Mining Facility to Galaxy Digital

Read more on the rally that caused Marathon to sell Bitcoin in:

Bitcoin Surges After Fed Relaxes on Interest Rate Hikes

See original on DailyCoin

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