MARA Boosts BTC Holdings to $3.3 Billion Through $1B Convertible Note Offering

MARA, formerly Marathon Digital, has announced the purchase of an additional 703 BTC.

This recent initiative follows an earlier purchase of 5,771 Bitcoin (BTC) on November 23, bringing the total number of buys through its $1 billion convertible note offering to 6,474 BTC.

MARA’s BTC Holdings

According to a Nov. 27 X post, both transactions were executed at an average price of $95,395 per coin. MARA’s total Bitcoin holdings now stand at 34,797 BTC, valued at approximately $3.3 billion.

After transaction costs, the mining company still has approximately $160 million in remaining proceeds available for future Bitcoin purchases during price dips. It also stated that it had repurchased a portion of the 2026 notes for $200 million.

The latest purchases come after the company completed its $1 billion offering of 0% convertible senior notes due 2030 last week. The firm indicated that it intends to use approximately $199 million of the proceeds to repurchase its outstanding convertible notes due 2026, while the rest of the funds will be designated for more Bitcoin buys and general corporate purposes.

It also revealed plans to issue another $700 million in convertible senior notes in a private offering to qualified institutional buyers. The returns from this offering will be used to redeem a portion of the 2026 notes and fund further Bitcoin acquisitions.

According to Google Finance data, the company’s stock closed up 7.81% at $26.92 on November 28. Over the past month, MARA has seen a 42.13% increase in its stock price, while its year-to-date growth is 17.4%. The company also boasts a market capitalization of $9 billion.

Parallels and Risks in Bitcoin Buying Strategy

MARA’s decision to fund Bitcoin acquisitions through convertible notes is similar to MicroStrategy’s approach, which has used corporate debt to amass Bitcoin since 2020.

In its most recent move, MicroStrategy issued $3 billion in senior convertible notes at 0% interest, later using it to stock up on more Bitcoin. Between November 18 and 24, the business intelligence firm bought 55,000 BTC at an average price of $97,862 per coin, bringing its total investments to 386,700 BTC.

Despite the company’s substantial investment in the cryptocurrency, its stock has faced significant volatility. In the week between November 21 and 27, as BTC’s price corrected, its shares fell 35% from a peak of $535 to as low as $340 before recovering to $353.

Critics of the company’s approach argue that acquiring Bitcoin through debt is a risky and unsustainable strategy, especially if the cryptocurrency’s price declines. However, MicroStrategy won’t face repayment obligations until 2028, which should give the company enough time to navigate and manage short-term market downturns.