- MARA Holdings, formerly Marathon Digital, has sold nearly one-third of its Bitcoin holdings, amounting to $1.1 billion, amid a so-called strategic pivot to AI.
- It is one of the largest publicly traded Bitcoin mining companies, controlling 5% of total BTC hashrate.
- The company had previously called it a debt-buyback exercise.
- MARA also fired 15,000 employees, suggesting the pivot may be due to survival difficulties.
- The company is expected to continue selling its other $2.3 billion BTC holdings.
- The sales come amid global uncertainty due to conflict, economic slump, and a liquidity crisis.
MARA Holdings Sells 33% of its BTC Holdings
MARA Holdings has sold at least 33% of its Bitcoin holdings as crypto markets suffer from a liquidity crisis. The company called the move a debt-reduction exercise.
As of today, MARA has another $2.3 billion in Bitcoins, which it is expected to sell if markets do not recover soon. The company has held a multi-billion-dollar portfolio of Bitcoin since 2020.
MARA is one of the largest publicly traded Bitcoin mining companies in the world, controlling an estimated 5% of the total mining hashrate.
Pivot to AI and Energy Seems Desperate
The so-called pivot to AI comes at a time when the company sold nearly 33% of its Bitcoin holdings, calling it a strategic debt reduction.
However, the firing of 15,000 employees tells another story. Just like every other company in the crypto markets, MARA has been struggling to survive. Its Bitcoin holdings aren’t enough to provide it a cushion like Strategy. As a result, it is forced to sell its BTC as a moat before any further crash arrives in the market.
The pivot to AI and Energy infrastructure is aligned with the current market demand for AI tools and energy demand amid a global fuel crisis.
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