TLDR
Marathon Digital purchased 6,474 BTC in November 2023, including an additional 703 BTC following initial purchase
Company raised $1 billion through zero-interest convertible notes to fund purchases
Marathon now holds 34,794 BTC ($3.3B), second only to MicroStrategy
$160M cash remains for potential future Bitcoin purchases
Public companies increased Bitcoin holdings from 272,774 to 508,111 BTC in 2023
Marathon Digital has expanded its Bitcoin holdings by purchasing 6,474 BTC in November 2023, solidifying its position as the second-largest corporate holder of the cryptocurrency.
The company completed the acquisition through a series of purchases, including a recent addition of 703 BTC following an initial purchase of 5,771 BTC at an average price of $95,395 per coin.
The purchase was funded through a successful $1 billion zero-interest convertible senior note sale, which generated $980 million in net proceeds. As part of its financial strategy, Marathon used a portion of these funds to repurchase $200 million of its existing 2026 notes.
Marathon Digital now holds approximately 34,794 BTC in its treasury, valued at $3.3 billion at current market prices. This holding represents 0.16% of Bitcoin’s total supply, placing the company firmly behind industry leader MicroStrategy, which controls 1.8% of the total Bitcoin supply.
With our 0% $1 billion convertible notes offering, we are excited to share an update:
– Acquired an additional 703 BTC, bringing the total to 6,474 BTC, at an average price of $95,395 per BTC– YTD BTC Yield Per Share 36.7%– Total owned BTC: ~34,794 BTC, currently valued at… pic.twitter.com/bzbunlyBRN
— MARA (@MARAHoldings) November 27, 2024
The company maintains a strategic reserve of $160 million in remaining proceeds, which it plans to use for additional Bitcoin purchases during market dips. This approach aligns with Marathon’s long-term strategy of accumulating Bitcoin as a treasury reserve asset.
Marathon Digital CEO Fred Thiel expressed strong support for corporate Bitcoin adoption, stating that Bitcoin should be considered for every company’s balance sheet. Thiel pointed to Bitcoin’s finite supply as a potential hedge against inflation and currency devaluation.
The market has responded positively to Marathon’s strategy, with the company’s shares closing up nearly 8% following the announcement. Year-to-date, Marathon’s stock price has increased by approximately 14%, according to Yahoo Finance data.
The broader corporate Bitcoin landscape has seen substantial growth in 2023. Public companies have increased their combined Bitcoin holdings from 272,774 BTC to 508,111 BTC year-to-date. November proved particularly active, with over 143,800 BTC added to corporate treasuries, compared to approximately 2,400 BTC in October.
MicroStrategy has led this trend with aggressive purchasing, acquiring over 130,000 BTC in November alone. The company recently executed its largest single purchase, demonstrating continued confidence in its Bitcoin treasury strategy.
Other companies have begun following similar strategies. Rumble recently announced plans to allocate up to $20 million of its excess cash reserves to Bitcoin purchases, following public support from CEO Chris Pavlovski and MicroStrategy’s Michael Saylor.
AI firm Genius Group has also entered the space, acquiring $14 million worth of Bitcoin in early November. The company has committed to maintaining 90% or more of its reserves in Bitcoin, with plans to reach $120 million in total Bitcoin investments.
According to Bitcoin financial services firm River, 62 publicly traded companies now implement a Bitcoin treasury strategy as of November 2024.
62 public companies now have a bitcoin treasury strategy.
Private companies are estimated in the thousands, with 1000 business clients on https://t.co/FoI3dat56g alone. pic.twitter.com/m9Qdz5HkL8
— River (@River) November 18, 2024
Marathon’s year-to-date per-share yield on its Bitcoin holdings stands at 36.7%, demonstrating the potential returns of this strategy under favorable market conditions.
The company’s recent convertible note offering mirrors MicroStrategy’s approach of using corporate debt to acquire Bitcoin, a strategy gaining traction among institutional investors.
Marathon’s latest acquisition was executed through multiple purchases, with the additional 703 BTC following the initial larger purchase of 5,771 BTC.
The company continues to monitor market conditions for optimal entry points, maintaining its $160 million cash reserve for future opportunities.
