Marathon Digital, one of the leading bitcoin mining companies in the United States, wants to borrow the equivalent of 2.7 billion reais to buy bitcoin and mining machinery.
The move is interesting, as the company has around 7 thousand bitcoins in cash, or just over 400 million reais in the current conversion. In other words, they don't want to get rid of the BTC even if they need to go into debt to do so.
Strategy to keep bitcoins and bet against the dollar
Marathon's strategy is in line with other publicly traded bitcoin miners such as Riot, Hu8 and Bitfarms, who all prefer to keep their bitcoins rather than liquidate them. Together, these companies have more than 20 thousand bitcoins (BRL 5 billion) in cash.
This shows the confidence of bitcoin miners in betting on cryptocurrency and resembles the movement of German industrialists towards the country's hyperinflation between 1914 and 1923. Back then, the richest people took out large loans in Deutschmarks to buy gold, as a way of to protect against the effects of inflation.
Currently, with inflation hitting records in several countries, bitcoin has become a kind of gold with better qualities. Large companies such as Tesla, Microstrategy and some even listed on the Brazilian stock exchange have bitcoin in their cash.
Marathon's proposal will give creditors interest on equity twice a year, with priority enforcement in the event of bankruptcy and maturing to December 2026. The money will be used to "purchase bitcoin or machines to mine bitcoin."
In short, Marathon and other mining companies are betting heavily on the cryptoactive rise. Otherwise, they would not go into debt and liquidate their bitcoins.
It is worth remembering that Marathon became known as the first company to mine a block in accordance with the rules of the Office of Foreign Assets Control (OFAC), generating revolt in the community.
Content Company will borrow R$2 billion to buy bitcoin and mining machinery first appeared in Cointimes .