Marathon Patent Group, a Nasdaq listed company has purchased over 4,813 BTC equivalent to $150 million as at time of purchase.
The company is also involved involved in Bitcoin mining but this is the first time the company is purchasing Bitcoin from the market as part of its treasury reserves.
Merrick Okamoto, Marathon CEO told The Block Crypto:
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. We also believe that holding part of our treasury reserves in bitcoin will be a better long-term strategy than holding U.S. dollars, similar to other forward-thinking companies like MicroStrategy.
The transaction was executed by NYDIG, a crypto financial services company. The purchase was completed on Jan. 21 and the average price of each Bitcoin purchase was around $31,135.
Marathon Patent Group has been mining Bitcoin since 2017 and has 2,560 Bitcoin miners in its Bitcoin mining farm, which produces about 1.5 to 2 Bitcoin daily.
The Nasdaq-listed company recently ordered 100,500 S19 Miners from Bitmain for $270 million in order to expand it’s operations. Marathon CEO told The Block Crypto that the new purchased Miners will be shipped out beginning of this week and when deployed, Marathon could become the largest Bitcoin miner in the world with a combined hash rate exceeding 10.34 exahash.
This upgraded hash rate according to Okamoto would help Marathon produce about 55-60 Bitcoin daily. The company also recently formed a joint venture with Beowulf Energy to get cheap and affordable electricity for its Bitcoin mining facilities.