Catenaa, Wednesday, December 4, 2024 – Cryptocurrency mining giant MARA, formerly Marathon Digital, has increased its Bitcoin holdings to 34,797 BTC, valued at approximately $3.3 billion.
The expansion follows a $1 billion convertible note offering completed last week, enabling the acquisition of 6,474 BTC at an average price of $95,395 per coin.
MARA disclosed on Nov. 27 that the latest purchase included 703 BTC, complementing a prior buy of 5,771 BTC on Nov. 23. With $160 million in proceeds remaining, the company plans further Bitcoin acquisitions, particularly during market price dips.
The mining firm also repurchased $200 million of its 2026 notes and announced an additional $700 million in convertible senior notes to be issued privately. Proceeds will fund more Bitcoin buys and partially redeem the 2026 notes.
MARA’s debt-driven Bitcoin acquisition strategy parallels that of MicroStrategy, which has used corporate bonds to amass 386,700 BTC since 2020. While these investments are viewed as high-risk due to Bitcoin’s volatility, MARA’s executives appear confident in the long-term value of their approach.
MARA’s stock reflects investor optimism, climbing 7.81% to $26.92 on Nov. 28, with a 42.13% increase over the past month. However, market analysts caution about the risks of relying on debt for cryptocurrency purchases, particularly amid potential price corrections.
This bold strategy cements MARA’s position as a major Bitcoin holder, signaling continued institutional interest in the cryptocurrency. The company’s market capitalization now stands at $9 billion.
