Marathon Digital Holdings (NASDAQ: MARA), a leading Bitcoin (BTC) mining firm, announced a significant expansion of its BTC holdings on X. It has acquired BTC worth over $67 million recently as it continues aggressive buying following MicroStrategy’s lead.
MARA’s Bitcoin Buying Spree
Today, the company revealed the acquisition of an additional 703 BTC. This brings the company’s total holdings to approximately 34,794 BTC, currently valued at $3.3 billion, based on a spot Bitcoin price of $95,000.
The acquisition was funded through Marathon’s $1 billion 0% convertible notes offering. The firm stated that its average purchase price for the 703 BTC was $95,395 per coin. Marathon also reported a year-to-date Bitcoin yield per share of 36.7%, emphasizing the increasing value generated for its shareholders.
In a related move, the company repurchased $200 million of its 2026 convertible notes, leaving approximately $160 million in proceeds available for potential future Bitcoin purchases, particularly during price dips. This strategic financial maneuvering aligns with the company’s broader commitment to enhancing its BTC reserves while maintaining a strong liquidity position.
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
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Earlier last week, Marathon disclosed the acquisition of 5,771 BTC for $551 million at an average price of $95,554 per BTC. This purchase increased the firm’s holdings to 33,875 BTC at the time, valued at $3.4 billion based on a Bitcoin spot price of $99,000.
BTC Price to Surge Further?
Marathon’s aggressive accumulation strategy underscores its confidence in Bitcoin’s long-term potential and its intent to deliver shareholder value. By leveraging the 0% convertible notes offering, the company has positioned itself to capitalize on Bitcoin price movements while maintaining a robust financial footing.
The institutional buying of BTC via MicroStrategy, MARA, and spot ETFs has created a supply shrink, which could lead to a sustained BTC price rally in the long term. Currently, Bitcoin price has recovered from its downtrend, trading at $97,132.09 with 6.60% gains on Wednesday, November 27.
Meanwhile, the crypto analysts expect BTC to hit $100,000 soon if the institutional influx continues. Furthermore, Bitcoin could even hit $200,000 by next year as experts foresee an institutional influx of a whopping $2.28 trillion to enter the BTC market next year.
