In a significant development in the cryptocurrency market, MARA (formerly Marathon Digital) has announced that its buying spree has reached over $1.5 billion in Bitcoin acquisitions in the last two months. This acquisition is financed by the issuance of two convertible notes, giving the company a total boost in holdings of over 50% so far this quarter and nearly 200% this year.
Financing Its Treasury
MARA spent around $1.53 billion of the money it received from convertible notes in November and December on 15,574 Bitcoin (BTC), paying approximately $98,529 per coin. This acquisition brought its holdings to 44,394 BTC as of Dec. 18, up from 26,747 BTC at the end of the third quarter and 15,174 BTC at the end of 2023.
Repurchasing Convertible Notes
The company said it had repurchased around $263 million of its existing convertible notes due in 2026 and expects to use the remainder of the proceeds from the notes on more Bitcoin. This move demonstrates MARA’s commitment to acquiring more BTC and increasing its holdings.
Current Holdings Value
At roughly $100,000 per BTC, the company’s current holdings are worth $4.45 billion. The company enjoyed a yield of 22.5% on its holdings this quarter to date and 60.9% year-to-date. This significant return on investment highlights the potential of Bitcoin as a store of value.
Convertible Notes Issuance
MARA raised $1.925 billion from zero-coupon senior convertible notes in two offerings. On Nov. 21, it secured $1 billion from notes maturing in 2030, with net proceeds of $980 million. The notes had a conversion price of $25.91 per share, which was a 42.5% premium over the average trading price before the offering’s pricing.
On Dec. 4, the company said it had placed $850 million in notes due in 2031, with net proceeds of $835.1 million. The conversion price on the notes was $34.58, or 40% over the share price on Dec. 2. These convertible notes have provided MARA with the necessary funding to acquire more BTC and increase its holdings.
Following a Trend
MARA began buying Bitcoin immediately after the notes were issued, announcing the purchase of 5,771 BTC at $95,554 per coin on Nov. 22. It had bought another 703 BTC by Nov. 27 to bring its treasury to 34,794 BTC. By Dec. 10, the treasury had reached 40,435 BTC.
Market Trend
MARA was not the only bull on the market in December. Hut 8 announced the purchase of 990 BTC on Dec. 19. Riot Platforms bought $510 million worth of Bitcoin between Dec. 10 and 12 after announcing a bond issue on Dec. 9. CleanSpark announced a $500-million convertible note issuance on Dec. 13 but did not intend to buy Bitcoin with the proceeds.
Conclusion
MARA’s buying spree has reached over $1.5 billion in Bitcoin acquisitions in the last two months, giving the company a significant boost in holdings. With its current holdings valued at $4.45 billion, MARA is well-positioned to capitalize on the potential of Bitcoin as a store of value.
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- Crypto has 4 years to grow so big ‘no one can shut it down’: Kain Warwick, Infinex: This article provides insights into the potential growth of the cryptocurrency market and its future prospects.
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