Bitcoin Assets of MicroStrategy and Marathon Digital

MicroStrategy, a business analytics firm, has gained notoriety for its aggressive Bitcoin strategy. The company holds a massive reserve of Bitcoin, which has helped support the price of Bitcoin.

Similarly, Marathon Digital, a cryptocurrency mining company, issued convertible bonds to finance the purchase of more bitcoins. Marathon has accumulated 11,774 BTC worth approximately $1.1 billion. Critics are closely examining these leveraged moves, questioning the sustainability of such strategies.

In particular, Marathon's actions have raised concerns due to the size of its Bitcoin purchases and the potential risks they pose. For instance, the company used proceeds from its convertible bond offerings to finance its latest Bitcoin purchase.

This has flooded the market with a significant amount of BTC, pushing its value higher despite a lack of real demand. As of December 9, 2024, Marathon owns 40,435 BTC, which is valued at approximately $3.9 billion, based on a spot price of $96,500 per bitcoin.