Marathon Digital Holdings (MARA), a leading Bit mining company, purchased $153 million worth of Bit on December 19. This is the second purchase this month.
Between November and December 2024, the company raised $1.9 billion through zero-coupon convertible bonds. This funding is supporting an aggressive Bit acquisition strategy as institutional interest in digital assets surges.
Bit in a historic bull market... strategic moves
With the 0% convertible bond funds, MARA purchased 15,574 BTC at an average price of $98,529, totaling around $153 million.
Additionally, the company used $263 million to repurchase a portion of its 2026 convertible bonds. The remaining funds are being held for additional Bit purchases.
As of December 18, MARA holds 44,394 BTC, worth approximately $445 million based on Bit's spot price of $10,151 on that day. The company's operational efficiency is reflected in its quarterly Bit yield of 22.5% and annual yield of 60.9%.
MARA's calculated investment was made as Bit prices surpassed $100,000. The company's decision to acquire Bit near average prices underscores its belief in the asset's sustained value.
The company's actions align with a broader trend of more firms leveraging financial tools like convertible bonds to expand their crypto holdings.
"Public companies that mine Bit and mint more Bit are the future guardians of American cyberspace. More important than the Air Force, Navy, or Army. The world hasn't yet realized this. Well done." - A crypto influencer said.
Following in MicroStrategy's footsteps
Alongside MARA, more companies are aggressively acquiring Bit, following in the footsteps of MicroStrategy. Earlier this week, MicroStrategy purchased another $150 million worth of BTC, solidifying its position as the largest corporate Bit holder.
This Bit-first strategy has yielded significant results for Michael Saylor's company. MSTR's price is up 400% year-to-date. The company's stock has closely tracked the 2024 Bit bull cycle. This growth has allowed MSTR to be included in the Nasdaq-100 index earlier this month, with an expected inclusion in the S&P 500 next year.
However, MARA's stock has not enjoyed similar sustained gains despite its ongoing BTC purchases. Nevertheless, Saylor remains optimistic about MARA and expects the company to achieve a trajectory akin to MicroStrategy.
In a recent social media exchange, Saylor told MARA CEO Fred Thiel that he expects the company to be included in the Nasdaq-100 next, according to Thiel.
Overall, MARA's bold strategy reflects confidence in Bit's long-term potential, but it also faces challenges. Reliance on convertible bonds, in particular, can expose the company to market volatility, especially when Bit prices fluctuate significantly.
Additionally, the company must navigate the environmental and regulatory scrutiny surrounding Bit mining. The energy-intensive process continues to face criticism for its ecological impact.
Earlier this year, Russia implemented mining bans in several regions during the winter to ensure stable power supply. Meanwhile, in Iran, persistent power outages have been attributed to crypto mining. These incidents reflect the ongoing oversight that mining operations may face, despite the increasing adoption of Bit.
