Marathon Digital buys $249M Bitcoin, reserves reach 25K BTC

Bitcoin miner Marathon Digital has purchased another $249 million worth of Bitcoin after raising $300 million from a senior note offering.

On Aug. 14, the miner said it used part of the note sale proceeds to buy around 4,144 Bitcoin at an average price of roughly $59,500, which brought its “strategic Bitcoin reserve to over 25,000 BTC,” it added on X.

Marathon saw net proceeds of around $292.5 million for its convertible senior notes due September 2031, which bear a 2.125% annual interest rate and are convertible into cash, Marathon stock, or both.

Marathon said the remaining cash from the note sales would be used to buy more Bitcoin and for “general corporate purposes,” which possibly includes strategic acquisitions.

A Marathon spokesperson told Cointelegraph it believes Bitcoin “is the premier strategic treasury asset” and is “adopting a multifaceted strategy for acquiring Bitcoin.”

Its latest Bitcoin hoard comes after it purchased 2,282 BTC over July, worth $124 million, which Marathon CEO and chairman Fred Thiel said was part of a “hodl strategy” — a misspelling of “hold” that made its way into the crypto scene’s lexicon.

Marathon (MARA) shares closed 2.26% down on the day to $15.14. Its share price is down nearly 34% year-to-date, according to Google Finance.

MARA saw a slight 0.13% fall to $15.12 in after-hours trading. Source: Google Finance

Marathon’s second-quarter earnings earlier this month missed Wall Street estimates, posting 9% lower than estimated revenues of $145.1 million, but still a 78% year-over-year bump from Q2 2023.

It comes as crypto mining profitability has hit a record low after the Bitcoin halving, which cut mining rewards in half.

Miner hashprice, which measures mining profits, fell to a record low earlier this month, with Blockbridge reporting large public miners will struggle to make a profit, especially Marathon, which had the highest all-in mining cost last month.

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