Key Takeaways:
- Marathon Digital acquired 4,144 BTC for approximately $249 million, raising its Bitcoin reserves to over 25,000 BTC.
- The purchase was funded by a $300 million senior note offering with a 2.125% interest rate, aimed at further Bitcoin acquisitions and potential corporate investments.
- Despite this strategic move, Marathon’s stock has declined by 2.26% on the day and nearly 34% year-to-date, amid declining crypto mining profitability.
Marathon Digital recently expanded its Bitcoin holdings by acquiring 4,144 BTC, valued at around $249 million, after raising $300 million through a senior note offering.
This purchase aligns with CEO Fred Thiel’s “hodl strategy,” boosting Marathon’s total Bitcoin reserves to over 25,000 BTC.
MARA secures $300M through an oversubscribed offering of convertible senior notes. With proceeds, we purchased 4,144 BTC (valued at approx. $249M), boosting our strategic bitcoin reserve to over 25,000 BTC. Learn more: pic.twitter.com/EKwKW6eSny
— MARA (@MarathonDH) August 14, 2024
The company used proceeds from the note sales, which carry a 2.125% interest rate and are convertible into cash or stock, to finance the acquisition.
Marathon plans to allocate the remaining funds towards additional Bitcoin purchases and potential corporate acquisitions.
Despite these strategic moves, the company’s stock price declined by 2.26% on the day and has dropped nearly 34% year-to-date.
PUBLIC COMPANIES ARE STACKING #BITCOIN LIKE NEVER BEFORE
— Kyle Chassé (@kyle_chasse) August 14, 2024
🇺🇸 MICROSTRATEGY: $2 BILLION
🇺🇸 MARATHON DIGITAL: $250 MILLION
🇺🇸 SEMLER SCIENTIFIC: $150 MILLION
🇯🇵 METAPLANET: $70 MILLION
THEY’RE GOING ALL-IN—ARE YOU? 🚀 pic.twitter.com/Tio1sNiGMt
The recent Bitcoin acquisition follows a July purchase of 2,282 BTC for $124 million.
Marathon faces challenges as crypto mining profitability declines, partly due to the Bitcoin halving, which has significantly impacted mining rewards.
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