After selling another convertible note, bitcoin mining and blockchain infrastructure company Marathon Holdings has increased its Bitcoin holdings by $3.9 billion to a total of $3.9 billion.
Using the proceeds from its zero-coupon convertible notes offerings, MARA has acquired 11,774 BTC for ~$1.1 billion at ~$96,000 per #bitcoin and has achieved BTC Yield of 12.3% QTD and 47.6% YTD. As of 12/9/2024, we hold 40,435 BTC, currently valued at $3.9 billion based on a… pic.twitter.com/2uvnrhbxaP
— MARA (@MARAHoldings) December 10, 2024
A Florida-based company has disclosed that it has scooped up 11,774 Bitcoins for around $1.1 billion, spending an average price of approximately $96,000 per Bitcoin. Before being liquidated on Dec. 9 (an event in which a trader loses collateral to cover the position of another trader), Marathon’s Bitcoin holdings were worth around $4 billion, and the cryptocurrency was trading at around $98,000 per token.
Direct funding for this acquisition was provided by selling convertible notes, a fundraising method used by most companies that want to increase their Bitcoin treasury. Under this arrangement, investors buy the notes and, in return, get the right to convert them into company shares. Like others in the industry, Marathon uses proceeds from these notes to purchase Bitcoin.
Marathon Joins Corporate Trend Of Bitcoin Reserve Adoption
Popularised by MicroStrategy leader Michael Saylor, this strategy has been championed by those who like to build up Bitcoin reserves using such financial instruments. Now, following in the footsteps of other corporate players, like MicroStrategy itself, which has spent $25 billion on Bitcoin since 2020, Marathon has purchased Bitcoin.
Last week, $MSTR‘s treasury operations delivered a BTC Yield of 3.3%, providing a net benefit of approximately 13,270 BTC to shareholders, or around 1,896 BTC per day. At $98K per BTC, this equates to $1.3 billion for the week, or $186 million per day.
— Michael Saylor⚡️ (@saylor) December 10, 2024
Along with the announcement, Marathon reported a 12.3% quarter-to-date and a 47.6% year-to-date BTC yield as of Dec. 9, a measure of the change in BTC holdings versus outstanding diluted company shares. This new metric has become a critical performance factor for companies integrating Bitcoin into their financial strategies.
Marathon’s move is part of a larger trend of companies adopting Bitcoin as a reserve asset. Riot Platforms, its competitor, also plans to spend $500m on a convertible note sale to purchase Bitcoin.
Behind that $40 billion (£30.8bn) in BTC is MicroStrategy, which has been relatively quiet despite being known as the leader in corporate Bitcoin reserves since going all-in on Bitcoin. Saylor has applauded Marathon and Riot for putting their weight behind the so-called “Bitcoin Standard,” a growing trend among US-based companies wishing to secure their monetary future with Bitcoin.
The fact that tax-paying companies continue to convert cash into Bitcoin shows the digital asset’s growing role in corporate finance and the wider trend toward considering cryptocurrency a store of value in economically uncertain times.
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