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Understanding Bitcoin Treasury Strategies: Insights From Public Bitcoin Miners Like MARA

The article discusses the Bitcoin treasury strategy of MARA Holdings (formerly Marathon Digital Holdings), the largest Bitcoin mining company by market cap. MARA stands out in the industry with its significant Bitcoin treasury, holding 25,945 BTC as of August 31, 2024. The company not only holds the Bitcoin it mines but also actively purchases Bitcoin from the market using funds raised from financial markets. This strategy has positioned MARA as a top option for investors seeking exposure to Bitcoin through traditional financial markets. The article also highlights the success of MicroStrategy, another company that has seen gains from its Bitcoin treasury strategy. Holding Bitcoin on the balance sheet serves as a hedge against rising operational costs for Bitcoin miners. Bitcoin's reliability as a store of value during inflation and market uncertainty is another reason for companies adopting this strategy. However, there are risks involved, such as the potential impact on enterprise value and stock prices during bear markets, as well as the competitive nature of Bitcoin mining and the need for robust risk management strategies.

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