Marathon Digital Holdings revealed how much BTC the company is now holding in their December report. Notably, they also mentioned that they have no plans of selling these coins anytime soon. This is undoubtedly an interesting announcement for the company to make, especially since Marathon recently purchased a “record number” of Bitcoin miners in December 2021.
According to reports, the mining company got a massive loan using Bitcoin as collateral, which is a concept that more and more people will do in the future. Marathon CEO Fred Thiel says in the report that 2021 was a “transformative year” for the company, as it boosted its overall hashrate by 1,790%.
Not only that, 2021 saw Marathon improving its Bitcoin production by 846% YoY, with them touting 3,197 self-mined BTC. These numbers are undoubtedly impressive, and they show the capacity of Marathon’s mining business.
BTC Miners Remain Strong
Lex Moskovski was one of the first few people to spot the trend. The analyst tweeted in February 2021 that miners have begun holding their Bitcoin instead of selling them. He continues by saying that it was “the first day since Dec, 27 when Miners Position change turned positive.”
About several months ago, NewsBTC scoured through data to try and find an explanation for the event. The data revealed that miner profitability was no longer as high as it used to be. Notably, Bitcoin’s profitability in April ($50k) was 40% higher than it is currently, even though the network hit $50k again.
In other words, “miner profitability is hitting the lows at all-time highs.” Due to this drop, miners are holding off from selling their BTC. Instead, they’re choosing to wait until the prices are higher. Profitability may be declining, but this doesn’t mean the business will hit the reds anytime soon.