Nasdaq-listed Marathon Patent Group buys $150 million worth of bitcoin as part of the company's treasury reserves

Quick Take

  • Publicly-traded Marathon Patent Group has bought bitcoin worth about $150 million.
  • Marathon CEO Merrick Okamoto told The Block that the purchase was made from the company’s cash reserves. 

Nasdaq-listed Marathon Patent Group announced Monday that it has purchased around 4,813 bitcoin for about $150 million.

The investment is part of the company's treasury funds, Marathon CEO Merrick Okamoto told The Block. This is the first time the company, which is involved in bitcoin mining, has bought bitcoin from the market.

"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," said Okamoto. "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."

To be sure, Marathon's stock rallied 892% last year and MicroStrategy's stock gained 166%, as compared to bitcoin's gain of about 300% during the year. 

Earlier this month, Marathon raised $250 million in an equity round. When asked whether those funds were utilized to buy the bitcoin, Okamoto told The Block that the company had $425 million in cash before this raise, which was utilized to buy the bitcoin.

Crypto financial services firm NYDIG helped execute the transaction. The purchase was completed on January 21, NYDIG told The Block, adding that the purchase amount per bitcoin was around $31,135.

The order was completed "in only a few hours" from idea to execution, said NYDIG. 

Last month, the firm also assisted insurance giant