Marathon Digital (MARA) has added 703 BTC to its holdings, bringing its total to 6,474 BTC, following a $1 billion convertible note offering.
Bitcoin mining giant Marathon Digital (NASDAQ: MARA) announced the purchase of an additional 703 Bitcoins BTC $94 011 24h volatility: 1.4% Market cap: $1.87 T Vol. 24h: $28.47 B through its latest $1 billion convertible note at a 0% interest rate. With this, its total Bitcoin purchases have reached 6,474 BTC.
In an official announcement, the Bitcoin miner stated that they purchased 703 more Bitcoins at an average price of $95,395 per coin. this comes following the company’s initial purchase of 5,771 BTC. As a result, Marathon Digital has reported a 36.7% BTC yield since the beginning of 2024, over its Bitcoin purchases.
Apart from its Bitcoin purchases, MARA also adds Bitcoins to its Treasury through its mining operations. By combining everything, the Bitcoin miner holds a total of 34,797 BTC in its treasury, worth a staggering $3.3 billion.
Moreover, Marathon Digital repurchased $200 million of its 2026 notes and plans to allocate the approximately $160 million remaining from its convertible debt raise to acquire additional Bitcoin during future price dips at more favorable levels.
Drawing a playbook from Microstrategy’s Bitcoin strategy, MARA has been making similar moves raising funds through convertible debt offerings and using the proceeds to buy BTC. Through this strategy, MicroStrategy has generated a BTC yield of 59.3% year-to-date.
Year to date, $MSTR's treasury operations delivered a BTC Yield of 59.3%, providing a net benefit of ~112,125 BTC to our shareholders, or ~341 BTC per day. At $100K per BTC, that would equate to $11.2 billion for the year so far, or $34.1 million per day.
— Michael Saylor⚡️ (@saylor) November 25, 2024
Marathon Digital Explains the Importance of US Dominance in Mining
Under Donald Trump‘s leadership, Marathon Digital has asked the US to aggressively pursue the option of having a strategic Bitcoin reserve. In its recent article on the X platform, Marathon Digital stressed the Bitcoin qualities of decentralization, finite supply, and cross-border transferability, which makes it a strong alternative to gold as a store of value.
The firm contends that in addition to holding Bitcoin, the United States must also establish dominance over its mining infrastructure, particularly in securing block space and hash rate.
It emphasized that control over critical resources like Bitcoin’s block space and hash rate could have a significant impact on US financial sovereignty and its ability to maintain global influence in the digital era. It said:
“By controlling hash rate, a nation can prioritize access to blockspace, preventing adversarial nations from censoring or manipulating its transactions. Conversely, failing to secure a sufficient share of blockspace and hash rate leaves the US vulnerable to external pressures in a world where Bitcoin’s importance as a financial and geopolitical tool is rapidly growing.”
MARA Stock Remains on Investors’ Radar
Furthermore, the MARA stock price is seeing a strong uptick following investor optimism. Over the past month, the stock has gained 42.1% surging past $26, against Bitcoin’s 36% gains.
Earlier this week, finance giant Cantor Fitzgerald stated that MARA offers a better value proposition than MicroStrategy Inc (NASDAQ: MSTR). They added that Marathon Digital (MARA) is currently trading at a 152% premium over its Bitcoin holdings.
Unlike MicroStrategy, which acquires Bitcoin at the spot market rate, MARA benefits from its ability to mine Bitcoin at a 40% discount to the spot price, offering a significant advantage in its business model.
Additionally, Cantor highlighted MARA’s operational efficiency and strategic positioning, suggesting the company could surpass MicroStrategy (MSTR) in profitability metrics. Based on these factors, the analysts have set a target price of $42 for MARA stock, reported Street Insider.
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