Marathon Digital urges US to adopt Bitcoin reserve in open letter

Marathon Digital Holdings published an open letter calling on the US 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 changing global financial environment.

The letter highlights Bitcoin’s limited supply, decentralized nature, and growing importance as a store of value and medium of exchange. Marathon compared Bitcoin to gold, arguing that gold has historically served as a reserve asset but has become less effective in the digital age due to inefficiencies in global transactions and controls.

The company argues that Bitcoin offers superior portability and scalability, making it a more viable reserve option for the future.

Marathon is a US-based company specializing in Bitcoin mining and aims to support and improve the Bitcoin ecosystem by increasing the computing power of the blockchain through environmentally responsible operations. As of November 24, Marathon has 33,875 Bitcoins.

Popularity of Bitcoin reserve

Marathon’s call to action comes at a time when global interest in Bitcoin reserves is increasing. The letter references Senator Cynthia Lummis’ Bitcoin Act, which calls for the U.S. government to acquire up to one million Bitcoins over the next five years. He also noted that the US currently holds about 200,000 Bitcoins, trailing other countries such as China, which holds about 190,000 Bitcoins.

The letter emphasized the importance of Bitcoin mining infrastructure beyond reserves. Bitcoin mining is the process of verifying transactions and securing the Bitcoin network using computing power known as hashrate.

Marathon argued that controlling a significant portion of the global hashrate is critical to ensuring “transaction sovereignty” that protects nations from foreign interference in financial transactions.

Six-step plan of the marathon

In the letter, Marathon outlined a six-step plan for the United States, 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 United States vulnerable to geopolitical pressures, particularly as nations move away from the dominance of the dollar in favor of alternative financial systems.

“US lawmakers must recognize Bitcoin and Bitcoin mining as critical components of the country’s financial and geopolitical strategy. “Just as the United States has led in the accumulation of gold reserves, it must now lead in this developing sector.”

Marathon Digital