One of the largest publicly traded bitcoin miners and “hodlers” of the coins it mines, Marathon Digital (MARA), said that it may consider to sell some of it’s bitcoins, but unlikely to do it in the near-future.
“We may purchase or sell bitcoin in future periods as needed for treasury management or general corporate purposes,” Marathon CFO Hugh Gallagher said during an earnings conference call.
“I’ll say we don’t really have an intention to do that [sell bitcoins] in the near-term,” he said, noting that the company is also considering other options for financing, which includes revolver loans, term-loans, equipment financing and an at-the-market equity offering.
The Las-Vegas based miner last sold its bitcoin in October 2020 and has been accumulating its mined bitcoin since then. Most recently, Marathon said that it has 9,673 bitcoins, with a fair market value of $365.5 million.
Should Marathon sell some of its bitcoins, it would be in-line with its competitor, Riot Blockchain (RIOT). Riot sold approximately $10 million worth of bitcoins in April, after selling about $9.4 million in March. It is said that the company is evaluating the amount of coins monthly for its operational and expansion cash requirements.
It would be positive news for Marathon shareholders to sell a few bitcoins to backstop expenses, because it would be a less expensive means of financing. Recently, shareholders have been punishing miners that are raising capital by issuing shares causing equipment financing and bitcoin-backed loans to have become an emerging trend among miners.
According to the miner on Wednesday, it has cash on hand of $118.5 million as of March 31, while total liquidity, defined as cash on hand plus available revolving credit facilities, was $218.5 million.