Marathon Digital has made a significant strategic move to fund its Bitcoin purchases and debt reduction with zero-coupon convertible bonds. The company reportedly holds a total of 44,394 BTC, worth $4.4 billion.
Leading Bitcoin miner Marathon Digital Holdings (MARA) made its second major purchase this month, purchasing $1.53 billion worth of BTC on Dec. 19. The company raised $1.9 billion in zero-coupon convertible notes over November and December 2024. The fund supports Marathon’s aggressive Bitcoin buying strategy at a time when institutional investors are increasingly interested in digital assets.
Marathon purchased 15,574 BTC with funds from zero-coupon convertible bonds, at an average price of $98,529 and totaling approximately $1.53 billion. The company also used the $263 million proceeds to buy back some of its convertible bonds due in 2026. The remaining funds were earmarked for additional Bitcoin purchases.
As of December 18, MARA holds a total of 44,394 BTC, which at its current price is worth $4.45 billion. The company’s operational efficiency is also remarkable; it is stated that it has achieved a Bitcoin return of 22.5% on a quarterly basis and 60.9% on an annual basis.
MARA’s calculated investments stand out as a correct strategy as the Bitcoin price has exceeded the $100,000 level. The company’s preference to buy Bitcoin at an average price close to its peak shows its belief in the long-term value of this asset.
These steps are part of a broader trend that reflects the growing interest of companies increasing their crypto holdings and using financial instruments such as convertible bonds.
One crypto influencer has stated that public companies that mine Bitcoin will be the future cybersecurity defenders of the United States. This statement highlights the strategic importance of companies that mine Bitcoin and increase their Bitcoin reserves. MicroStrategy recently consolidated its leadership as the largest Bitcoin holder among public companies by purchasing $1.5 billion worth of BTC.
MicroStrategy’s Bitcoin-focused strategy has led to a huge increase in the company’s stock price, with MSTR up 400% since the beginning of the year. The company’s stock price has gained value following Bitcoin’s bullish cycle, and this growth has led to MicroStrategy being included in the Nasdaq-100 and is expected to be included in the S&P 500 in 2024.
Marathon Digital has followed a similar strategy of buying Bitcoin, but its stock has yet to see the same rally as MicroStrategy. However, MicroStrategy CEO Michael Saylor is optimistic about MARA and believes the company will achieve the same success.
Finally, Saylor expressed to Marathon CEO Fred Thiel in a social media post that he expects MARA to be listed on the Nasdaq-100 in the coming period. This could be a step that solidifies Marathon’s leadership in Bitcoin mining.