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Key Notes
- MARA Holdings has deployed $1.53 billion to acquire 15,574 Bitcoin, while maintaining a BTC yield of 60.9% year-to-date and currently holds 44,394 Bitcoins valued at $4.45 billion.
- The company raised $1.925 billion through 0% convertible notes, using $263 million to repurchase existing notes due 2026, with remaining funds allocated for future Bitcoin purchases.
- Despite share dilution, MARA's stock has gained over 37% in three months, trading at $21.10, while Bitcoin supply on centralized exchanges has decreased by 140k BTCs in the last 30 days.
MARA Holdings Inc. (NASDAQ: MARA), a top-tier cryptocurrency mining company based in the United States, reported its Bitcoin (BTC) performance with the United States Securities and Exchange Commission (SEC) on Wednesday, December 18.
According to Form 8-K, MARA Holdings registered a BTC Yield of 22.5 percent between January 1, 2024, and December 18, 2024. Year-to-date, the company reported a BTC Yield of about 60.9 percent.
The company highlighted that it raised $1.925 billion from 0% convertible notes issued in November and early December 2024. From these proceeds, the company deployed $1.53 billion to purchase 15,574 Bitcoin at an average price of approximately $98,529 per BTC.
The company used about $263 million from the raised funds to repurchase its existing convertible notes due 2026. The remaining funds from the proceeds are expected to be used to purchase more Bitcoins. As of December 18, the company held 44,394 Bitcoins, which are valued at about $4.45 billion based on a spot value of around $100k.
Earlier this month, the company completed the acquisition of 11,774 Bitcoins, valued at about $1.1 billion. Notably, MARA Holdings increased its convertible senior notes offering from $750 million to $850 million, with an option for the private investors to purchase an additional $159 million.
Although the $9.9 billion company has been diluting its shares to purchase more Bitcoins, the overall performance is expected to mirror that of Bitcoin in the long haul. In the past three months, MARA shares have gained over 37 percent in value to trade at about $21.10 at the time of this writing.
Impact of MARA Holdings’s Bitcoin Strategy
The overall demand for Bitcoin among institutional investors has remained high as a hedge factor against inflation and ongoing fiat devaluation. According to the latest on-chain data, the overall Bitcoin supply on centralized exchanges has declined by nearly 140k BTCs in the last 30 days to hover about 2.23 million, as of this writing.
More companies around the world have been following in the footsteps of MicroStrategy Inc. (NASDAQ: MSTR) to add Bitcoin to their respective balance sheets. In the United States, more investors have been investing in Bitcoin through the spot BTC ETFs, which recently surpassed the holdings by Satoshi Nakamoto of over 1.1 million.
Consequently, the Bitcoin price is projected to continue rising in the coming quarters as the demand vs. supply shock continues to tighten.
Moreover, more nation-states are looking for ways to implement a strategic Bitcoin reserve as soon as possible. Already, the upcoming Trump administration has pledged to do something great with the crypto space to remain ahead of the competition.
Disclaimer: Coinspeaker is committed to providing unbiased and transparent reporting. This article aims to deliver accurate and timely information but should not be taken as financial or investment advice. Since market conditions can change rapidly, we encourage you to verify information on your own and consult with a professional before making any decisions based on this content.
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