Marathon Digital Raises $1.9 Billion to Expand Bitcoin Portfolio

Leading Bitcoin miner Marathon Digital Holdings (MARA) purchased $1.53 billion worth of BTC on December 19, marking its second purchase this month.

Over November and December 2024, the company raised an impressive $1.9 billion through zero-coupon convertible notes. This fund is fueling its aggressive Bitcoin acquisition strategy at a time when institutional interest in digital assets is surging.

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. The company’s operational efficiency is evident in its performance metrics, achieving a quarter-to-date Bitcoin yield of 22.5% and a year-to-date yield of 60.9%.

MARA’s calculated investments come as Bitcoin’s price continues to soar, recently surpassing the $100,000 mark. The company’s decision to acquire Bitcoin at an average price near its peak highlights its belief in the asset’s enduring value.

The company’s actions align with a broader trend of corporations leveraging financial instruments like convertible notes to expand their crypto holdings.

“Public companies that mine bitcoin and mine fiat for more bitcoin are the future guardians of the US cyberspace domain. More important than the airforce, navy or military. The worlds just hasn’t gotten it yet. Well done,” said one crypto influencer.

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.

This Bitcoin-first strategy has largely paid off for Michael Saylor’s company, as MSTR’s year-to-date price shows a 400% increase. The company’s stock price has closely mirrored Bitcoin’s bullish cycle in 2024. This growth has driven MSTR to be included in the illusive Nasdaq-100 earlier this month. Also, S&P 500 inclusion is expected next year.

However, MARA’s stock did not enjoy a similar rally despite its continuous BTC acquisitions. Still, Saylor remains bullish on MARA and expects the firm to achieve the same trajectory as MicroStrategy.

In a recent social media exchange, Saylor told the Bitcoin miner’s CEO, Fred Thiel, that he also expects MARA to be included in the Nasdaq-100 next.

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. The extremely energy-intensive process is still criticized for its ecological impact.

Earlier this year, Russia imposed mining bans in several regions during the winter to ensure consistent power supply. Meanwhile, in Iran, there have been allegations of constant blackouts due to crypto mining activities. These events reflect that despite Bitcoin’s growing acceptance, mining operations will likely continue to be scrutinized.