2024

Bitcoin

Bitcoin miner Marathon Digital has purchased another $249 million worth of Bitcoin after raising $300 million from a senior note offering.
On Aug. 14, the miner <a href="https://www.globenewswire.com/news-release/2024/08/14/2930552/0/en/Marathon-Digital-Holdings-Inc-Completes-300-Million-Offering-of-2-125-Convertible-Senior-Notes-Due-2031-Purchases-249-Million-of-Bitcoin.html" target="_blank" rel="noopener nofollow">said</a> it used part of the note sale proceeds to buy around 4,144 Bitcoin (<a href="https://cointelegraph.com/bitcoin-price">BTC</a>) at an average price of roughly $59,500, which brought its “strategic Bitcoin reserve to over 25,000 BTC,” it <a href="https://x.com/MarathonDH/status/1823835982740816127" target="_blank" rel="noopener nofollow">added</a> on X.
Marathon saw net proceeds of around $292.5 million for its <a href="https://cointelegraph.com/news/world-s-largest-bitcoin-miner-250-m-raise-buy-bitcoin">convertible senior notes</a> due in September 2031, which bear a 2.125% annual interest rate and are convertible into cash, Marathon stock or both.
<blockquote class="twitter-tweet">
 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: <a href="https://t.co/EKwKW6eSny">pic.twitter.com/EKwKW6eSny</a>— MARA (@MarathonDH) <a href="https://twitter.com/MarathonDH/status/1823835982740816127?ref_src=twsrc%5Etfw">August 14, 2024</a>
</blockquote>
Marathon said the remaining cash from the note sales would be used to buy more Bitcoin and for “general corporate purposes,” possibly including strategic acquisitions.
A Marathon spokesperson told Cointelegraph that the company believes Bitcoin “is the premier strategic treasury asset” and is “adopting a multifaceted strategy for acquiring Bitcoin.”
Its latest Bitcoin hoard comes after <a href="https://cointelegraph.com/news/marathon-digital-bitcoin-holdings-july-2024"></a><a href="https://cointelegraph.com/news/marathon-digital-bitcoin-holdings-july-2024">it purchased 2,282 BTC in July</a> for $124 million, which Marathon CEO and chairman Fred Thiel said was part of a “hodl strategy” — a misspelling of “hold” that made its way into the crypto scene’s <a href="https://cointelegraph.com/learn/day-trading-vs-long-term-cryptocurrency-hodling-benefits-and-drawbacks">lexicon</a>.
Marathon shares closed down 2.26% on the day at $15.14. Its share price is down nearly 34% year-to-date, <a href="https://www.google.com/finance/quote/MARA:NASDAQ" target="_blank" rel="noopener nofollow">according</a> to Google Finance.
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 <img src="https://s3.cointelegraph.com/uploads/2024-08/dff7fc85-d041-4b79-8aac-700089000d3a.png" alt="Marathon Digital buys $249M Bitcoin, reserves reach 25K BTC" title="">
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 Marathon shares saw a slight 0.13% fall to $15.12 in after-hours trading. Source: Google Finance
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Related: <a href="https://cointelegraph.com/news/riot-platforms-boosts-bitfarms-stake-with-2-28-m-share-acquisition">Riot Platforms boosts Bitfarms stake with $2.28M share acquisition</a>
Earlier in August, Marathon’s second-quarter earnings&nbsp;<a href="https://cointelegraph.com/news/marathon-digital-shares-price-mara-earnings-report-revenue-bitcoin-mining">missed Wall Street estimates</a>.&nbsp;It posted revenues of $145.1 million, which were 9% lower than estimated, but it still enjoyed a 78% year-over-year bump from Q2 of 2023.
It comes as crypto mining profitability has hit a record low after the <a href="https://cointelegraph.com/learn/bitcoin-halving-how-does-the-halving-cycle-work-and-why-does-it-matter">Bitcoin halving</a>, which cut mining rewards in half. 
Miner hash price, which measures mining profits, <a href="https://cointelegraph.com/news/miner-profitability-falls-to-record-lows-blocksbridge">fell to a record low</a> earlier in August. Blockbridge reported that large public miners, especially Marathon, which had the highest all-in mining cost in August, will struggle to make a profit.
Magazine — ‘<a href="https://cointelegraph.com/magazine/bitcoin-layer2-sidechains-not-really-bitcoin-l2s/">Bitcoin layer 2s’ aren’t really L2s at all: Here’s why that matters</a>

Marathon Digital buys $249M Bitcoin, reserves reach 25K BTC

Cointelegraph

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