Mining company MARA, formerly known as Marathon Digital, has bolstered its Bitcoin reserves with the acquisition of 6,474 BTC, following a successful $1 billion convertible note offering. In its November 27 update to investors, MARA revealed that the purchase was executed in two phases: an initial buy of 5,771 BTC at an average price of $95,395 per coin, followed by an additional 703 BTC acquisition.
The company’s Bitcoin treasury now stands at 34,797 BTC, valued at approximately $3.3 billion. Year-to-date, MARA’s per-share yield on Bitcoin is an impressive 36.7%, highlighting its strategic positioning in the evolving digital asset landscape.
Beyond Bitcoin acquisitions, MARA has also repurchased a portion of its 2026 notes for $200 million, leaving roughly $160 million from its convertible debt raise. The remaining funds will be deployed to acquire Bitcoin during price dips, reflecting a commitment to leveraging market volatility.
A Familiar Playbook: Corporate Debt for BTC
MARA’s approach mirrors the strategy employed by MicroStrategy, a corporate pioneer in Bitcoin acquisition through debt financing. MicroStrategy, which began amassing Bitcoin in 2020, has used similar methods, including a $3 billion senior convertible note issue at 0% interest.
MicroStrategy’s latest spree saw the acquisition of 55,000 BTC between Nov. 18 and 24 at an average price of $97,862 per BTC, boosting its total holdings to a staggering 386,700 BTC. This makes MicroStrategy one of the largest corporate holders of the cryptocurrency.
MARA’s $1 billion debt offering is part of its ambitious “21/21 Plan,” targeting $42 billion in funding over three years to secure additional Bitcoin and fortify its balance sheet.
Risks and Criticism Loom
While such aggressive strategies have attracted investor attention, they also invite scrutiny. Critics argue that using fiat-denominated debt to buy Bitcoin is inherently risky, particularly in volatile markets. MicroStrategy has faced similar skepticism, with its stock price plunging by 25% on Nov. 21 despite its growing Bitcoin portfolio.
MARA’s approach, like MicroStrategy’s, could encounter significant financial strain if Bitcoin’s value experiences a sharp decline. However, with repayment obligations deferred until 2028, MARA has time to weather market fluctuations and potentially capitalize on Bitcoin’s long-term trajectory.
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