tl;dr
Marathon Digital Holdings (MARA) purchased $1.53 billion worth of BTC on December 19, its second purchase this month. The company raised $1.9 billion through zero-coupon convertible notes in November and December 2024, fueling its aggressive Bitcoin acquisition strategy amid surging institutional in...
Marathon Digital Holdings (MARA) purchases $1.53 billion worth of BTC, fueling aggressive Bitcoin acquisition strategy amid surging institutional interest
Marathon Digital Holdings (MARA) purchased $1.53 billion worth of BTC on December 19, its second purchase this month. The company raised $1.9 billion through zero-coupon convertible notes in November and December 2024, fueling its aggressive Bitcoin acquisition strategy amid surging institutional interest. MARA used $263 million to repurchase notes due in 2026 and set aside the remaining funds for additional Bitcoin acquisitions, holding 44,394 BTC valued at $4.45 billion. The company achieved a quarter-to-date Bitcoin yield of 22.5% and a year-to-date yield of 60.9%.
Strategic Moves Amid Bitcoin’s Historic Bull Run
The funds from the 0% convertible notes allowed MARA to purchase 15,574 BTC for approximately $1.53 billion at an average price of $98,529. Additionally, the firm used $263 million of the proceeds to repurchase a portion of its convertible notes due in 2026. The remaining funds are set aside for additional Bitcoin acquisitions. As of December 18, MARA holds 44,394 BTC valued at $4.45 billion, based on Bitcoin’s current spot price of $100,151. MARA’s calculated investments come as Bitcoin’s price continues to soar, recently surpassing the $100,000 mark.
Following in MicroStrategy’s Shadows
Meanwhile, more companies like MARA are following in MicroStrategy’s footsteps to aggressively acquire Bitcoin and increase their reserves. Just earlier this week, MicroStrategy again purchased $1.5 billion worth of BTC, increasing its lead as the largest Bitcoin holder among public companies. However, MARA’s stock did not enjoy a similar rally despite its continuous BTC acquisitions. Still, MARA’s bold strategy reflects its confidence in Bitcoin’s long-term potential, though it introduces exposure to market volatility and regulatory scrutiny, particularly in the context of environmental impact of Bitcoin mining.
Overall
Overall, MARA’s bold strategy reflects its confidence in Bitcoin’s long-term potential, but it also comes with challenges. The reliance on convertible debt introduces exposure to market volatility, particularly as Bitcoin prices fluctuate. Additionally, the company must navigate environmental and regulatory scrutiny associated with Bitcoin mining.