Marathon Digital Spends $1.1 Billion on Bitcoin, Following Purchasing Trends

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As a seasoned researcher with a penchant for all things blockchain and cryptocurrency, I find myself intrigued by Marathon Digital Holdings (MARA)’s latest Bitcoin acquisition spree. With a life spent immersed in the ever-evolving world of digital assets, I’ve seen many companies dabble in Bitcoin, but few have committed as wholeheartedly as MARA.

Marathon Digital Holdings has invested approximately $1.1 billion in purchasing 11,774 Bitcoins. This move underscores their continued dedication to expanding their Bitcoin acquisition strategy.

It joins firms like MicroStrategy and Riot Platforms in buying huge amounts of Bitcoin.

Marathon Digital Buys More Bitcoin

Initially, this acquisition was disclosed through a social media update. It’s worth noting that Marathon Digital is among the top-performing Bitcoin miners within the U.S., but the company has not limited itself to mining alone. Instead, it has augmented its mining activities by directly buying Bitcoins as well. The company asserted that these purchases were made using funds raised from a recent convertible note offering, which surpassed initial projections in a substantial manner.

Through funds raised from its zero-coupon convertible bond sales, MARA recently purchased 11,774 Bitcoins for approximately $1.1 billion, with each Bitcoin costing around $96,000. This transaction has resulted in a quarter-to-date (QTD) Bitcoin Yield of 12.3% and a year-to-date (YTD) yield of 47.6%. As of December 9, 2024, the firm’s Bitcoin holdings total 40,435 coins, currently worth about $3.9 billion at a spot price of $96,500 per Bitcoin, as they stated.

Recently, Marathon has been actively buying Bitcoin, with a notable purchase of 6,474 BTC in November and plans to buy more in December. Essentially, Marathon has been aggressively pursuing this strategy in the fourth quarter following substantial net losses in the third. In the past month, its stock value has seen ups and downs without any clear direction for future growth.

Additionally, MARA disclosed a Form 8-K, which was submitted to the Securities and Exchange Commission. This document indicates that Marathon owns approximately 40,435 Bitcoins.

As a researcher, I’ve noticed a surge in significant Bitcoin acquisitions currently. For instance, MicroStrategy has invested an impressive $2.1 billion into BTC, while Riot Platforms is seeking to raise $500 million through convertible notes for similar purposes. This trend suggests that some corporations are amassing substantial Bitcoin reserves at an accelerated pace.

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2024-12-11 07:37