Marathon Digital advocates for a national Bitcoin reserve and mining strategy to bolster economic and geopolitical stability.
Marathon Digital Proposes U.S. Bitcoin Reserve
Marathon Digital Holdings, a leading Bitcoin mining company, has issued an open letter urging the United States to create a strategic Bitcoin reserve. Highlighting Bitcoin’s importance in a shifting global financial landscape, the company emphasizes its finite supply, decentralized framework, and utility as a superior reserve asset compared to gold.
With @SenLummis‘s #Bitcoin Act in the pipeline, the US must lead in mining, blockspace, & hashrate so we can ensure that “…a sovereign can have sovereignty.” – @fgthiel Read more: x.com/MARAHoldings/s…
Bitcoin: A Digital Gold for the Future
In its letter, Marathon Digital compares Bitcoin to gold, stating that while gold has served as a reliable reserve asset historically, it lacks efficiency in the digital era. Bitcoin, with its scalability and portability, offers an edge as a store of value and medium of exchange.
As of November 2024, Marathon holds 33,875 BTC and remains committed to environmentally conscious mining operations to support the blockchain ecosystem.
Global Context: Rising Interest in Bitcoin Reserves
Marathon’s proposal aligns with growing global interest in Bitcoin reserves. U.S. Senator Cynthia Lummis’s Bitcoin Act suggests acquiring one million BTC over five years. The U.S. government already holds 200,000 BTC, trailing behind China’s estimated 190,000 BTC reserves.
Bitcoin mining plays a pivotal role in transaction validation and securing the blockchain network through computational power. Marathon emphasizes that controlling a significant share of the global hashrate ensures “transaction sovereignty,” safeguarding financial independence from external interference.
Marathon’s Six-Step Strategy
Marathon’s open letter outlines a comprehensive six-step plan for the U.S.:
- Establish a Strategic Bitcoin Reserve: Accumulate Bitcoin to reinforce national financial stability.
- Expand Domestic Mining Operations: Encourage sustainable and efficient Bitcoin mining within the U.S.
- Develop Mining Hardware: Innovate domestic production of mining hardware to reduce reliance on foreign supply chains.
- Set Global Standards: Lead efforts to define global standards for decentralized networks.
- Promote Regulatory Clarity: Create clear policies to encourage Bitcoin adoption and mining innovation.
- Foster Public-Private Collaboration: Leverage partnerships to align government and industry goals.
The letter warns that inaction could leave the U.S. vulnerable to geopolitical pressures as other nations pivot away from the U.S. dollar in favor of alternative financial systems.
Geopolitical Implications
Marathon’s proposal underscores the need for Bitcoin mining infrastructure to maintain economic sovereignty. Controlling hashrate—a critical measure of mining power—is presented as essential for mitigating external threats to transaction integrity.
A Call to Action
The company urges U.S. lawmakers to recognize Bitcoin and its mining infrastructure as strategic assets. “Just as the U.S. has led in amassing gold reserves, it must now lead in this emerging sector,” Marathon states, advocating for proactive measures to secure a competitive position in the global financial ecosystem.
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