Marathon Digital Holdings, one of the largest publicly traded bitcoin mining companies, has purchased an additional $249 million worth of bitcoin. This latest acquisition expands Marathon’s corporate bitcoin treasury to over 25,000 btc.
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BREAKING NEWS: Marathon Digital Holdings buys 4144 twitter.com/hashtag/bitcoin?src=hash&ref_src=twsrc%5Etfw”>#bitcoin worth $249 million.
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— bitcoin Magazine (@BitcoinMagazine) twitter.com/BitcoinMagazine/status/1823837028171096239?ref_src=twsrc%5Etfw”>August 14, 2024
On August 12, Marathon announced a $250 million convertible note offering to raise funds for the purchase of bitcoin. The notes were in strong demand, allowing Marathon to expand the deal to $300 million.
The company used $249 million of the proceeds to accumulate an additional 4,144 bitcoins at an average price of $59,500 per bitcoin. This brings Marathon's bitcoin reserves to over 25,000 btc worth nearly $1.5 billion.
In July, Marathon purchased $100 million worth of bitcoin on the open market as part of its long-term “holding” strategy. The Nasdaq-listed mining company aims to hold onto newly mined coins rather than sell them.
Marathon is aggressively expanding its bitcoin reserve by mimicking MicroStrategy’s corporate playbook. Other companies, such as Semler Scientific and Metaplanet, are also raising money in debt markets to buy more bitcoin and take advantage of its adoption curve.
These savvy public companies are using the fiat system's low interest rates to hoard scarce bitcoins, demonstrating the growing belief that bitcoin is the best strategic reserve asset for public companies.
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