Marathon Digital Holdings Increases Bitcoin Position to 34,794 BTC

TLDR

• MARA (formerly Marathon Digital) acquired 703 BTC at ~$95,395 each
• Total November purchases: 6,474 BTC (including previous 5,771 BTC)
• MARA’s total holdings now at 34,794 BTC (~$3.3 billion)
• Company raised $1 billion through 0% convertible senior notes
• MARA stock up 7.81% to $26.92, showing 26.92% increase over six months

Bitcoin mining company MARA, previously known as Marathon Digital, has announced the purchase of an additional 703 Bitcoin (BTC), continuing its pattern of large-scale cryptocurrency acquisitions. The company made the purchase at an average price of $95,395 per Bitcoin, adding to its growing digital asset portfolio.

The latest acquisition brings MARA’s total Bitcoin holdings to 34,794 BTC, valued at approximately $3.3 billion at current market prices. This purchase is part of a larger November buying initiative, which included a previous acquisition of 5,771 BTC, bringing the month’s total purchases to 6,474 Bitcoin.

MARA’s expansion of its Bitcoin holdings comes after the company’s successful fundraising efforts earlier this month. The mining firm raised $1 billion through the issuance of convertible senior notes that carry 0% interest and are set to mature in 2030. Part of these funds were allocated to buy back some of the company’s existing 2026 notes.

The company has strategically set aside $160 million from the raised funds, earmarking this amount for potential future Bitcoin purchases when market conditions align with their acquisition strategy. This reserve demonstrates MARA’s continued commitment to expanding its cryptocurrency holdings.

MARA’s stock performance has shown positive movement in correlation with these developments. The company’s shares closed at $26.92 on November 27, marking a 7.81% increase for the day. Over a six-month period, MARA’s stock price has risen by 26.92%, reflecting growing investor confidence in both the company and the broader digital asset market.

With our 0% $1 billion convertible notes offering, we are excited to share an update:

– Acquired an additional 703 BTC, bringing the total to 6,474 BTC, at an average price of $95,395 per BTC
– YTD BTC Yield Per Share 36.7%
– Total owned BTC: ~34,794 BTC, currently valued at… pic.twitter.com/bzbunlyBRN

— MARA (@MARAHoldings) November 27, 2024

The year-to-date performance metrics revealed by the company show a Bitcoin yield per share of 36.7%, indicating strong operational efficiency in their mining activities. This metric helps investors understand the company’s ability to generate Bitcoin through its mining operations relative to its share count.

MARA CEO Fred Thiel has noted increased interest from institutional investors in Bitcoin. During a recent CNBC interview, Thiel discussed the potential impact of the upcoming change in government administration on cryptocurrency regulations in the United States.

The company’s Bitcoin acquisition strategy aligns with similar moves by other corporate entities in the cryptocurrency space. MicroStrategy, currently holding the largest corporate Bitcoin position globally, has made substantial purchases this month, totaling $4.6 billion and $5.4 billion in consecutive weeks.

Other companies have also begun entering the Bitcoin market. Canadian video-sharing platform Rumble has designated $20 million for future Bitcoin purchases, while Japanese investment firm Metaplanet has accumulated over 1,000 BTC in its holdings.

The cryptocurrency market has responded positively to these corporate actions. Bitcoin currently trades at $95,615, showing a 1% increase over the past 24 hours.

The timing of MARA’s purchase coincides with broader market movements and increasing corporate interest in cryptocurrency investments. The company’s decision to acquire additional Bitcoin adds to the growing trend of corporate treasury diversification into digital assets.

MARA’s latest acquisition represents a continuation of its established strategy to build and maintain a strong Bitcoin position. The company has demonstrated consistent execution of this strategy through both direct purchases and mining operations.

The mining company’s ability to raise substantial capital through zero-interest convertible notes suggests strong investor confidence in their business model and strategy. The successful fundraising has provided MARA with additional resources to pursue its Bitcoin acquisition goals.

Within the competitive landscape of Bitcoin mining companies, MARA’s recent moves solidify its position as a major player in the industry. The company’s total holdings of 34,794 BTC place it among the largest corporate holders of Bitcoin globally.

The company maintains additional capacity for future Bitcoin purchases through its reserved funds, indicating potential for further expansion of its holdings when market conditions align with their acquisition strategy.