Bitcoin Miner Marathon Sold 1,500 BTC in January, Will Sell More in 2023
- Bitcoin miner Marathon Digital sold 1,500 BTC tokens last month and currently holds 11,418 BTC, of which 8,090 BTC are unrestricted.
- The company produced a record 687 Bitcoin in January 2023, which is a 45% increase from the 475 BTC tokens in December 2022.
- Marathon has made the “strategic decision” to sell some of its BTC holding in 2023 to cover some of the operating expenses.
- The miner has also signed a deal with FS Innovation, LLC, regarding the formation of an Abu Dhabi Global Markets company.
Bitcoin mining companies have gotten into trouble recently following the price crash of the world’s oldest cryptocurrency due to the implosion and bankruptcies of multiple crypto companies in 2022. Interestingly, in 2023, the leading crypto coin has improved a lot and continues to see higher prices, even touching the $24k price level earlier this week. Mining firm Marathon Digital Holdings confirmed that they sold a significant quantity of their BTC holdings in January.
As per the official release from the Bitcoin miner, Marathon published its unaudited BTC production and miner installation updates for January 2023 confirming that it sold over 1,500 BTC tokens last month and currently holds 11,418 BTC, of which approximately 8,090 BTC (c. $187.2 million) are unrestricted as of January 31st.
Fred Thiel, Marathon’s chairman and CEO, stated that the company produced a record 687 Bitcoin in January 2023, which is a 45% increase from the 475 BTC tokens in December 2022. As per Thiel, this was a result of Marathon’s “team’s ability to work in tandem with the new hosting provider in McCamey, Texas, to address the maintenance and technical issues at the King Mountain data center that had suppressed our Bitcoin production in the fourth quarter of 2022.”
The Marathon executive further added that the company has made the “strategic decision” to sell some of its BTC holding to cover some of the Bitcoin miner’s operating expenses and for general corporate purposes. The plan is to continue to sell a portion of the BTC holdings in 2023 “to fund monthly operating costs.”
“Even with these sales, our unrestricted bitcoin holdings increased from 7,815 bitcoin as of December 31, 2022, to 8,090 bitcoin as of January 31, 2023, as our production improved and the appreciation in bitcoin’s price in January reduced the amount of bitcoin we had posted as collateral. Additionally, we ended the month with $133.8 million in unrestricted cash on hand,” Thiel added.
It is crucial to note that the Bitcoin miner’s stock plummeted almost 90% in 2022 due to the crypto market bear market and some miners like Compute North filing for bankruptcy due to macroeconomic conditions and market’s bearishness. However, it is crucial to note that the Las Vegas, Nevada-based company, was one of the very few crypto mining firms that refuted from selling any of their BTC holdings.
Another important confirmation made by Marathon in the announcement was a deal that it had signed with FS Innovation, LLC, regarding the formation of an Abu Dhabi Global Markets company for the establishment of one or more mining facilities for digital assets and mining of these assets.