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 bitcoin treasury to over 25,000 bitcoin.
Urgent: 🇺🇸 Marathon Digital Holdings buys 4144 #Bitcoin It is worth $249 million.
pic.twitter.com/PnMm9RLuev— Bitcoin Magazine (@BitcoinMagazine) August 14, 2024
On August 12, Marathon announced a $250 million convertible bond offering to raise funds to purchase Bitcoin. The bonds were met with strong demand, allowing Marathon to increase the deal size to $300 million.
The company then used the $249 million in proceeds to accumulate an additional 4,144 bitcoins at an average price of $59,500 per bitcoin, bringing Marathon’s bitcoin reserves to over 25,000 bitcoins, worth nearly $1.5 billion.
In July, Marathon bought $100 million worth of bitcoin on the open market as part of its long-term holding strategy. The Nasdaq-listed mining company seeks to hold onto newly mined coins rather than sell them.
Marathon is aggressively expanding its bitcoin holdings, mimicking MicroStrategy’s approach. Other companies, such as Simler Scientific and Metaplanet, are raising money in debt markets to buy more bitcoin and take advantage of its adoption curve.
These smart public companies are using the cheap lending rates provided by the fiat currency system to accumulate scarce bitcoins, demonstrating the growing conviction that bitcoin is the best strategic reserve asset for public companies.
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