Bitcoin miner Marathon Digital has expanded its Bitcoin holdings by purchasing an additional $249 million worth of Bitcoin after raising $300 million through a senior note offering.
On August 14, Marathon announced that it had used a portion of the proceeds from the note sale to acquire approximately 4,144 Bitcoin at an average price of roughly $59,500. This purchase increased the company’s “strategic Bitcoin reserve to over 25,000 BTC,” as shared on X (formerly Twitter).
The convertible senior notes, due in September 2031, yielded net proceeds of around $292.5 million for Marathon. These notes carry a 2.125% annual interest rate and can be converted into cash, Marathon stock, or a combination of both.
Marathon stated that the remaining cash from the note sales would be used to buy more Bitcoin and for “general corporate purposes,” which may include strategic acquisitions. A spokesperson for Marathon told Cointelegraph that the company views Bitcoin as “the premier strategic treasury asset” and is pursuing “a multifaceted strategy for acquiring Bitcoin.”
This latest purchase follows a previous acquisition in July, when Marathon bought 2,282 BTC for $124 million. Marathon’s CEO and chairman, Fred Thiel, described this move as part of a “hodl strategy” — a term that has become popular in the crypto community, derived from a misspelling of “hold.”
Marathon shares closed down 2.26% on the day at $15.14, reflecting a nearly 34% decline year-to-date, according to Google Finance. After-hours trading saw a slight additional drop of 0.13% to $15.12.
Earlier in August, Marathon’s second-quarter earnings fell short of Wall Street expectations, with revenues of $145.1 million—9% below estimates—though the company still reported a 78% year-over-year increase from Q2 2023.
The company’s challenges come amid a significant decline in crypto mining profitability following the Bitcoin halving, which reduced mining rewards by half. Miner hash price, a key measure of mining profitability, fell to a record low earlier in August. Blockbridge noted that large public miners, particularly Marathon, which had the highest all-in mining cost in August, are facing difficulties in turning a profit.
