Marathon Digital Holdings issued an open letter urging the United States to establish a strategic Bitcoin reserve.
The open letter outlined why Bitcoin (BTC) and its mining infrastructure are vital to maintaining economic and geopolitical stability in a shifting global financial landscape.
The letter highlights Bitcoin’s finite supply, its decentralized nature, and its growing importance as a store of value and medium of exchange. Marathon compared Bitcoin to gold, arguing that while gold has historically served as a reserve asset, it is becoming less effective in the digital era due to its inefficiencies in global transactions and auditing.
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: https://t.co/UNbfDAsZpr
— MARA (@MARAHoldings) November 26, 2024
Bitcoin, the company suggests, offers superior portability and scalability, making it a more viable reserve option for the future.
Marathon is a U.S.-based company that specializes in mining Bitcoin and aims to support and enhance the Bitcoin ecosystem by increasing the blockchain’s computational power through environmentally conscious operations. As of November 24, Marathon holds 33,875 Bitcoin.
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Bitcoin reserve popularity
Marathon’s call for action comes at a time of heightened global interest in Bitcoin reserves. The letter references Senator Cynthia Lummis’s Bitcoin Act, which proposes that the U.S. government acquire up to one million Bitcoin over the next five years. It also noted that the U.S. already holds around 200,000 Bitcoin, trailing other nations like China, which holds approximately 190,000.
Beyond reserves, the letter emphasized the importance of Bitcoin mining infrastructure. Bitcoin mining is the process of validating transactions and securing the Bitcoin network using computational power, known as hashrate.
Marathon argued that controlling a significant share of global hashrate is critical for ensuring “transaction sovereignty,” which protects nations from external interference in financial transactions.
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Marathon’s six-step plan
In the letter, Marathon outlined a six-step plan for the U.S., including creating a Bitcoin reserve, expanding domestic mining operations, developing mining hardware, and setting global standards for decentralized networks. The company warned that failure to act could leave the U.S. vulnerable to geopolitical pressures, particularly as nations move away from dollar dominance in favor of alternative financial systems.
“U.S. lawmakers should recognize Bitcoin and Bitcoin mining as critical components of the nation’s financial and geopolitical strategy. Just as the U.S. has led in amassing gold reserves, it must now lead in this emerging sector.”
Marathon Digital
