Key Points
- Marathon, the largest Bitcoin miner, recently purchased 4144 BTC, bringing its total holdings to 25000 BTC.
- This move is part of Marathon’s strategy to secure its position in Bitcoin mining and bet on BTC’s future value.
Marathon, a major player in the world of cryptocurrency, has recently made a significant purchase of Bitcoin (BTC). The company bought BTC worth $249 million, increasing its total holdings to 25000 BTC.
Marathon’s Strategic BTC Purchase
Marathon announced its latest acquisition through its official page. The company stated that it had secured $300M through an oversubscribed offering of convertible senior notes. With these proceeds, Marathon purchased 4,144 BTC, valued at approximately $249M. This move has significantly boosted Marathon’s strategic Bitcoin reserve.
The company purchased the 4,144 BTC at an average price of $59,000. The senior note offering for the purchase garnered considerable investor interest, resulting in $292.5 million in net income. This offering carries a 2.125% annual interest rate and is due in September 2031.
Marathon’s HODL Strategy
Marathon’s recent purchase aligns with its strategy for BTC accumulation. The company is committed to a HODL strategy, where it mines BTC and makes open market purchases to increase its reserve. Last month, MARA purchased $100 million worth of BTC, betting on its future value through accumulation.
According to Marathon, this HODL strategy reflects their confidence in the long-term value of BTC. They believe that BTC is the best treasury reserve asset, which will continually gain value, thus benefiting Marathon and its investors.
Marathon has significantly reduced its BTC sales since October 2023. Despite these sales, the company’s stock has declined by 33.97% Year-to-date (YTD) due to increased BTC volatility. However, Marathon aims to boost its value by continuing to accumulate BTC.
As BTC is expected to increase in value over time, continued accumulation will enhance Marathon’s stock, revenue, and profitability. Increased institutional adoption of BTC is also beneficial as it’s likely to drive up demand and buying pressure.
In conclusion, with increased institutional investment, the demand for BTC will likely rise, driving its value higher.
