MARA Bitcoin Holdings Increase with Over $600M Purchase Within 2 Months
MARA Bitcoin Holdings close up state with MicroStrategy after over $600 Million Purchase within October and November
Marathon Digital Holdings (MARA), a prominent publicly traded cryptocurrency mining company, has significantly expanded its Bitcoin holdings, purchasing 6,484 BTC for $618.3 million between October 1st and November 30th, 2024.
The acquisition, disclosed in a December 2nd filing with the United States Securities and Exchange Commission, represents a substantial commitment to Bitcoin as a strategic asset and highlights the company’s bullish outlook on the cryptocurrency’s long-term value. The average purchase price per Bitcoin was $95,352.
MARA Bitcoin Holdings Stick Closely with MicroStrategy
Considerable investment follows a period of strategic maneuvering by MARA. The company’s aggressive purchasing spree, totaling over $600 million in the last two months, solidifies its position as a major corporate holder of Bitcoin, second only to MicroStrategy, according to BitcoinTreasuries.
Notably, this assertive strategy reinforces MARA’s commitment to accumulating Bitcoin despite previous instances of selling. Earlier this year, the company divested 390 BTC or 63% of its monthly production of 616 BTC.
Furthermore, the sale followed the Bitcoin halving event in April 2024, which reduced the mining block reward and potentially influenced MARA’s decision to realize some profits. However, the recent large-scale purchases demonstrate a renewed and intensified focus on Bitcoin acquisition.
Further illustrating MARA’s commitment to Bitcoin, the company announced a private offering of $700 million in convertible senior notes due 2031. The offering’s proceeds will fund further Bitcoin acquisitions and the repurchase of outstanding 2026 convertible notes.
Nonetheless, the financing strategy further highlights MARA’s confidence in Bitcoin’s future price appreciation and its intention to leverage debt financing to accelerate its accumulation most likely in reaching the $100k mark. This proactive approach to capital deployment highlights a strategic imperative to maintain and expand its Bitcoin holdings.
MARA’s actions extend beyond mere financial investment. The company has publicly advocated for increased U.S. government involvement in Bitcoin and Bitcoin mining, arguing that securing a substantial national Bitcoin reserve is crucial for economic and national security. This advocacy parallels the U.S. government’s gold reserves, highlighting the perceived need for diversification of national assets beyond fiat currency.
