MARA buys $615 million worth of Bitcoin

MARA acquires 615 million dollars worth of Bitcoin

2024-11-28 by Ndaman Olayinka 3 minutes read
MARA acquires 615 million dollars worth of Bitcoin

After raising $1 billion through convertible notes, MARA Holdings, formerly known as Marathon Digital, bought 6,474 Bitcoin (BTC) for roughly $615 million.

MARA Holdings, the largest publicly traded Bitcoin miner, stated in a post on X on Wednesday that it had purchased its most recent batch of Bitcoin at an average price of $95,395 per BTC, increasing its total holdings to 34,794 BTC, or roughly $3.3 billion.

MARA acquires additional Bitcoin

Following its initial purchase of 5,771 BTC last week, the company reported purchasing an additional 703 BTC. The most recent BTC purchase comes after MARA closed its $1 billion offering of senior notes with 0% convertible notes due in 2030 last week.

According to the company, approximately $199 million of the proceeds will be used to repurchase its current convertible notes, which are due in 2026. The remaining funds will be used for general corporate purposes and the purchase of additional Bitcoin.

In terms of remaining proceeds available net of transaction costs for future BTC dip purchases, MARA still has roughly $160 million, the company reported yesterday. It also disclosed that it had spent $200 million to buy back some 2026 notes.

MARA stock and Bitcoin price rises

On Wednesday, MARA's stock closed at $26.92, up 7.81%. With a market valuation of $9 billion, it has increased 42.13% in the last month and 17.4% so far this year, according to Google Finance.

The price of Bitcoin is currently around $95,110.34, up 1.42% over the previous day, according to CoinMarketCap. With the goal of breaking through a vital resistance level between $100,000 and $102,000, the leading cryptocurrency is showing signs of a brief upsurge.

MicroStrategy remains largest publicly traded corporate holder of Bitcoin

With 386,700 BTC in total, MicroStrategy is still the largest publicly traded company Bitcoin holder. Between November 18 and Nov. 24, it made its largest acquisitions to date, paying roughly $5.4 billion for an additional 55,500 BTC. 

The financial services company SOS Ltd., based in China, is also following in the footsteps of companies like MicroStrategy, MARA, Semler Scientific, and Metaplanet, which have made substantial long-term investments in Bitcoin. On Wednesday, SOS announced that its plan to invest $50 million in buying Bitcoin had been approved by its board of directors.

Bitcoin's popularity is growing quickly as Wall Street talks about it as a hedge against economic uncertainty. It is being adopted as a strategic reserve asset by governments and businesses around the world. Since Mayor Ken Sim announced a plan to include Bitcoin in the city's balance sheet, Vancouver City is now in the public eye. Bitcoin will be a part of the city's investments, according to Ken Sim. With this move, Vancouver, the third-largest city in Canada, hopes to diversify its economy and become a "Bitcoin-friendly" hub.

Brazil may soon become one of the many countries that are adopting Bitcoin as a strategic asset. Congressman Eros Biondini introduced a historic bill on Monday that would establish RESBit, a sovereign federal Bitcoin reserve. 

Disclaimer

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