Bitcoin

Mining company MARA, formerly Marathon Digital, updated investors on Nov. 27, outlining its acquisition of 6,474 Bitcoin (<a data-ct-non-breakable="null" href="https://cointelegraph.com/bitcoin-price" rel="null" target="null" text="null" title="null">BTC</a>) through its recent 0% $1 billion convertible note offering.
According to the announcement, the company <a data-ct-non-breakable="null" href="https://x.com/MARAHoldings/status/1861848253362274469" rel="nofollow noopener" target="_blank" text="null" title="https://x.com/MARAHoldings/status/1861848253362274469">purchased</a> an additional 703 BTC following the initial purchase of 5,771 BTC at an average price of $95,395 per coin. The year-to-date, per-share yield of MARA’s BTC is 36.7%, and MARA currently holds roughly 34,797 BTC in its treasury, valued at approximately $3.3 billion.
MARA also purchased a portion of its 2026 notes for $200 million and will use the roughly $160 million remaining from the convertible debt raise to purchase more Bitcoin at more attractive levels during price dips.
The mining company’s recent <a data-ct-non-breakable="null" href="https://cointelegraph.com/news/mara-holdings-1b-convertible-notes-bitcoin-acquisition" rel="null" target="null" text="null" title="null">$1 billion convertible debt offering</a> takes a page out of MicroStrategy’s playbook of issuing corporate debt to acquire more BTC — a strategy that is growing in popularity among corporate institutions.
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 <img alt="MARA purchases 6,474 Bitcoin with convertible notes offering" src="https://s3.cointelegraph.com/uploads/2024-11/01936f8c-66b9-72cc-939c-cb012ccfb48b" title="">
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 Public companies with Bitcoin holdings. Source: <a data-ct-non-breakable="null" href="https://x.com/River/status/1858554395169784106" rel="nofollow noopener" target="_blank" text="null" title="https://x.com/River/status/1858554395169784106">River</a>
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Related: <a data-ct-non-breakable="null" href="https://cointelegraph.com/news/mara-holdings-wants-america-control-bitcoin-hashrate" rel="null" target="null" text="null" title="null">Crypto miner MARA wants US moving quicker to gobble up Bitcoin</a>
<h2 id="microstrategy-s-bitcoin-treasury-play">MicroStrategy’s Bitcoin treasury play</h2>
MicroStrategy has been purchasing Bitcoin since 2020. The company’s most recent debt raise was a <a data-ct-non-breakable="null" href="https://cointelegraph.com/news/microstrategy-completes-3-billion-raise-to-purchase-more-bitcoin" rel="null" target="null" text="null" title="null">$3 billion senior convertible note issue</a> at 0% interest.
The capital raise is part of the company’s ambitious 21/21 plan to secure $42 billion in funding over the next three years to purchase more Bitcoin and strengthen its balance sheet.
Despite the plan to use fiat-denominated debt to acquire Bitcoin, and <a data-ct-non-breakable="null" href="https://x.com/HODL15Capital/status/1861833648506323406" rel="null" target="null" text="null" title="null">heightened</a> investor interest in the company, the price of MicroStrategy’s shares sank by approximately 25% on Nov. 21, 2024.
The company <a data-ct-non-breakable="null" href="https://cointelegraph.com/news/microstrategy-expands-bitcoin-holdings-5-4b-purchase" rel="null" target="null" text="null" title="null">purchased approximately 55,000 BTC</a> between Nov. 18 and 24 at an average purchase price of roughly $97,862 per BTC. This puts MicroStrategy’s total Bitcoin holdings at roughly 386,700 BTC — making the company one of the largest holders of the digital asset.
However, MicroStrategy’s critics say the acquisition of Bitcoin through debt financing is a risky and unsustainable strategy — prompting some to question <a data-ct-non-breakable="null" href="https://cointelegraph.com/news/is-micro-strategy-bubble-what-risk-bitcoin-price" rel="null" target="null" text="null" title="null">whether MicroStrategy is a bubble</a>.
MicroStrategy could face financial trouble if the price of Bitcoin sharply declines, but won’t face repayment obligations until 2028 — which should provide the company with a long runway to mitigate short-term market downturns.
Magazine: <a data-ct-non-breakable="null" href="https://cointelegraph.com/magazine/bitcoin-price-ethereum-etf-thomas-fahrer/" rel="null" target="null" text="null" title="null">Bitcoin $500K prediction, spot Ether ETF ‘staking issue’— Thomas Fahrer, X Hall of Flame</a>

MARA purchases 6,474 Bitcoin with convertible notes offering

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