Bitcoin Miner Marathon Digital Buys $1.1B Worth of BTC

Bitcoin mining firm Marathon Digital (MARA) recently made headlines by buying 11,774 BTC for $1.1 billion. Notably, this would be the company’s biggest single BTC purchase ever. After this acquisition, Marathon Digital’s Bitcoin stash is 40,435 BTC, worth approximately $3.9 billion.

Using the proceeds from its zero-coupon convertible notes offerings, MARA has acquired 11,774 BTC for ~$1.1 billion at ~$96,000 per #bitcoin and has achieved BTC Yield of 12.3% QTD and 47.6% YTD. As of 12/9/2024, we hold 40,435 BTC, currently valued at $3.9 billion based on a… pic.twitter.com/2uvnrhbxaP

— MARA (@MARAHoldings) December 10, 2024

Marathon Digital Grows Its Bitcoin Portfolio

The Bitcoin miner acknowledged acquiring its latest BTC stash using proceeds from its recently concluded senior convertible notes offering. On December 2nd, Marathon Digital disclosed that it is offering $805 million to eligible investors. It added that most of the proceeds would be funneled into its BTC portfolio.

The latest BTC purchase brings the company’s BTC yield from the start of the quarter to date to 12.3% and a 47.6% yield year-to-date (YTD). The company’s 40,435 BTC also represents 0.193% of BTC’s total supply of 21 million.

Marathon Digital has explored several ways to boost its BTC holdings and ranking among Bitcoin mining companies. Last month, the firm announced that it had raised $1 billion to buy BTC. Two days later, the company acquired 5,771 BTC for around $573 million, further strengthening its position in the market. The firm also continues to raise BTC from its mining operations.

According to data from Bitcoin Treasuries, Marathon Digital is the second-largest public BTC holder after MicroStrategy. This cements Marathon Digital’s leading position among Bitcoin miners. The rival Bitcoin miner closest to Marathon is Riot Platforms. Yesterday, Riot launched a senior convertible note offering to raise $500 million, following Marathon’s path.

Impact on BTC’s Price

As of the time Marathon Digital announced its BTC acquisition, the leading cryptocurrency sold above $97,000. However, the apex coin has now retracted to $94,600, representing a 2.85% correction within 24 hours.

News of companies buying BTC likely plays a significant role in lowering the asset’s price. This is because whenever firms like MicroStrategy or Marathon Digital announce a BTC acquisition, the price soars momentarily. This serves as a sell signal for retail traders who seize the opportunity to profit from the price surge, thus triggering a price drawback.