MARA acquires $1.5B in Bitcoin to date with convertible notes

As a seasoned crypto investor with a knack for spotting trends and a penchant for risk-taking, I find MARA’s aggressive Bitcoin acquisition strategy intriguing. With over $1.5 billion invested in BTC in just two months, it’s clear they’re betting big on the future of digital currency.

As a crypto investor, I’ve been closely watching Mara’s aggressive Bitcoin buying spree that has reached an impressive $1.5 billion worth of Bitcoin acquisitions in just the last two months. This massive purchase was facilitated by the issuance of two convertible notes, significantly increasing their Bitcoin holdings by over 50% this quarter and nearly doubling their holdings for the year, reaching almost 200%.

Financing its treasury

In November and December, MARA used approximately $1.53 billion from convertible notes to purchase 15,574 Bitcoins, with each coin costing around $98,529. This statement was made by the miner on X. As a result, its Bitcoin holdings amounted to 44,394 BTC as of December 18, which is an increase from 26,747 BTC at the end of the third quarter and 15,174 BTC at the end of 2023.

The firm, previously named Marathon Digital, announced that it has bought back approximately $263 million worth of its own convertible bonds maturing in 2026. It plans to utilize the remaining funds obtained from these bonds for further investment in Bitcoin.

Currently, the value of the company’s Bitcoin holdings is approximately $4,450,000,000, given each BTC costs around $100,000. This quarter, the company has earned a return of 22.5%, and since the beginning of the year, they have achieved a return of 60.9%.

As a researcher, I’d rephrase it as follows: In two separate offerings, I found that MARA successfully raised a total of $1.925 billion through zero-coupon senior convertible notes. On November 21st, they secured $1 billion from notes maturing in 2030, with net proceeds amounting to approximately $980 million. The conversion price for these notes was set at $25.91 per share, which represented a 42.5% premium compared to the average trading price preceding the pricing of the offering.

On December 4th, the company announced that it had issued bonds worth $850 million, maturing in 2031, yielding a net amount of approximately $835.1 million. The conversion price for these bonds is set at $34.58 per share, which represents a 40% premium over the share price on December 2nd.

Following a trend

Starting from the day the notes were issued, MARA made an immediate move to acquire Bitcoin. On November 22, it declared its purchase of 5,771 Bitcoins at approximately $95,554 each. By November 27, it had acquired another 703 Bitcoins, increasing its holdings to a total of 34,794 Bitcoins. By December 10, the Bitcoin count in MARA’s treasury had risen to 40,435.

In December, it wasn’t just MARA that was buying Bitcoin. On the 19th, Hut 8 revealed they had purchased 990 Bitcoins. Additionally, Riot Platforms bought around $510 worth of Bitcoin between December 10th and 12th, following their announcement of a bond issue on the 9th.

On December 13th, CleanSpark revealed their plan for a $500 million convertible bond sale, however, they have no intention of using the funds to purchase Bitcoin.

 

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2024-12-19 21:22