Marathon Digital follows MicroStrategy
Borrowing debt to buy Bitcoin to meet mining challenges
Bitcoin miner Marathon Digital recently sold $300 million in convertible notes to buy 4,144 bitcoins, following MicroStrategy's strategy.
MicroStrategy's executive chairman Michael Saylor borrowed money to buy bitcoin on a large scale, making his company one of the world's largest bitcoin holders.
Marathon Digital's move reflects the plight of the mining industry: mining profits have fallen sharply, and miners have had to seek other means to maintain operations.
Due to the halving of Bitcoin and the increase in mining difficulty, Marathon Digital has chosen a "full HODL" strategy, retaining all Bitcoin mined and buying more through debt financing. This strategy aims to increase the company's reserves by holding Bitcoin and opportunistic purchases at market lows, hoping that future increases in Bitcoin prices will bring higher returns on investment.
Industry experts believe that as Bitcoin mining profit margins decline and pressure on miners increases, debt financing may revive across the industry. Marathon's strategy is seen as a pragmatic choice to deal with the current industry challenges, while also reflecting its confidence in the long-term value of Bitcoin.
