Marathon Digital Makes BTC Sale for First Time
Marathon Digital Holdings Inc., a crypto mining firm, made BTC sales for the first time in two years. The firm needed to tap the recent Bitcoin rally. That’s why the company sold around 1,500 Bitcoins, as the token surged over 40% in January.
Marathon Digital mined a record 687 Bitcoins
On Thursday, the crypto mining firm released an update about its mining operations in January. It mentioned that the firm mined around 687 BTCs in the month, and the production saw a 45% increase compared to the previous month.
In addition, the official statement discussed that the firm made the strategic decision to sell the tokens. The reason behind this move was higher and consistent growth in production. The sale of BTCs will allow the company to cover its operating expenses.
The company has sold more than 1,500 tokens and plans to sell more. Even after this sale, its total holdings stand at 11,418 BTC, from which 8,090 BTCs are unrestricted. Meanwhile, the company also reduced its BTC collateral with the sale and increased its unrestricted cash to around $133.8 million.
Is it panic selling?
Marathon’s move may seem like panic selling as the fear of winter looms around the crypto market. However, CEO and Chairman Fred Thiel disclosed that the reason for selling its holdings was higher production which increased its unrestricted holdings.
Meanwhile, the overall crypto market, specifically BTC, saw an historic January. The token saw a spike of more than 40% in its price, which indicates bullish trends. That’s one of the reasons the company sold a small portion of its Bitcoin reserves in January.
Last year, the crypto miner’s production was down by around 44%, yet it persisted with diamond handling. However, now that the market behaviour is positive, it has decided to sell to cover its operating costs and increase its liquidity.
Author: Wasay Ali
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