MARA, formerly Marathon Digital, has increased its Bitcoin holdings by acquiring 6,474 BTC. This purchase, made through a $1 billion convertible notes issuance with 0% interest, adds to the company’s already considerable Bitcoin treasury.
The freshly acquired Bitcoin contains an additional 703 BTC after an initial purchase of 5,771 BTC, for an average purchasing price of $95,395 per coin. As a result, MARA currently has a total of 34,797 BTC in its treasury, worth almost $3.3 billion.
The convertible notes, which mature in 2030, have also enabled MARA to repurchase $200 million of its existing 2026 notes. The company intends to use the remaining $160 million from the IPO to increase its Bitcoin holdings, especially amid price drops.
This method is consistent with the strategy of MicroStrategy, a well-known corporate Bitcoin investor. MicroStrategy has funded $3 billion in convertible notes to support Bitcoin acquisitions, increasing its total holdings to an industry-leading 386,700 BTC. However, such debt-financed schemes have raised controversy regarding their viability. Critics believe that using leveraged financing to acquire Bitcoin may expose businesses to severe financial risk in the case of a dramatic price drop.
Despite these worries, MARA and MicroStrategy remain committed to Bitcoin as an integral aspect of their financial plans. MARA’s efforts are also consistent with a broader trend of corporate interest in cryptocurrencies, demonstrating Bitcoin’s rising adoption as a strategic asset.
With a strong emphasis on extending its holdings, MARA is establishing itself as a prominent participant in the cryptocurrency market, utilizing new financial tactics to benefit from digital assets’ long-term potential. Whether this technique will result in big benefits or increase hazards remains an open question in the growing landscape of corporate crypto investments.
