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03/01/25
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Long-Term Bitcoin Investment Strategy: Insights from MARA Holdings’ CEO Fred Thiel
The CEO of MARA Holdings, Fred Thiel, has recently suggested that a long-term investment strategy in Bitcoin could benefit retail investors. He emphasized the cryptocurrency’s impressive price resilience over the years, noting that Bitcoin has experienced price declines only three times in the last 14 years. Thiel encourages people — especially younger generations — to allocate a modest sum to Bitcoin each month and not to sell in the short term.
Over the course of a few years, Thiel believes that this investment strategy can yield significant growth, as Bitcoin has historically appreciated by an average of 29% to 50% annually. However, he acknowledged that Bitcoin’s inherent volatility makes it a riskier choice compared to traditional financial assets, which could pose challenges for some investors who may not be prepared for such fluctuations.
Thiel also pointed to several potential drivers for Bitcoin’s price appreciation in the near future. Notably, the emergence of a United States Bitcoin reserve, increasing institutional involvement through spot Bitcoin exchange-traded funds, and a more favorable regulatory landscape could all contribute to upward price momentum by 2025. This perspective aligns with recent polling from a notable Bitcoin advocate that indicated a significant portion of voters plan to expand their Bitcoin investments in the coming years.
In line with these ambitions, MARA Holdings has adopted a new treasury policy aimed at retaining all Bitcoin mined and utilizing various capital market instruments to enhance its Bitcoin reserves. Currently, the company holds 44,394 Bitcoin, valued at approximately $4.3 billion, making it the second-largest Bitcoin holder among publicly traded companies, following MicroStrategy. MARA’s holdings have seen a substantial increase, rising from 15,174 Bitcoin at the beginning of the previous year, reflecting a 192.5% growth alongside a nearly 120% appreciation in Bitcoin’s price throughout the year.
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