Nasdaq-listed Marathon Patent Group announced Monday that it has purchased around 4,812.66 Bitcoin (BTC) for about $150 million, as another US public company adopts Bitcoin as a treasury reserve asset.
The purchase was made from the company’s cash reserves, according to Merrick Okamoto, CEO of the crypto mining group.
The company bought 4,812.66 BTC, at an implied average price of around $31,100 apiece, in the transaction, which was enabled by crypto financial services firm NYDIG.
The price of Bitcoin, the largest cryptocurrency by market cap, has fallen from historic highs of over $40,000. At the time of writing, Bitcoin is trading at $32,582.44, down 0.3% over the last 24 hours. Meanwhile, Ether (ETH), the native cryptocurrency of Ethereum, is trading at $1,361.29, down by 4.7%.
“By purchasing $150 million worth of Bitcoin, we have accelerated the process of building Marathon into what we believe to be the de facto investment choice for individuals and institutions who are seeking exposure to this new asset class,” said Merrick Okamoto, Marathon’s chairman & CEO.
More Large Companies Adopt Bitcoin
“We also believe that holding part of our Treasury reserves in bitcoin will be a better long-term strategy than holding US Dollars, similar to other forward-thinking companies like MicroStrategy.”
This is the first time the crypto mining company has bought Bitcoin from the market, as it is accelerating its transformation into “one of the only pure-play, Bitcoin investment options” for Wall Street.
Crypto financial services firm NYDIG, who helped execute the trade, also assisted insurance giant MassMutual to buy Bitcoin worth $100 million last month.
More tech companies will adopt Bitcoin as the treasury reserve asset, according to ARK Investment Management CEO Cathie Wood.
In a recent interview with Yahoo Finance, the exchange traded fund (ETF) magnate said large corporations have asked her if they should take Square’s playbook in converting part of their treasury reserves to Bitcoin, as an inflation hedging strategy.
“I think we’re going to hear about more companies putting this hedge on their balance sheet,” Wood said, “particularly tech companies who understand the technology and are comfortable with it.”