Mara bought $1.5b Bitcoin, plans to acquire more

Marathon Holdings restocked $1.5 billion worth of Bitcoin using proceeds from its convertible note offering.

Bitcoin (BTC) infrastructure company Marathon Holdings purchased 15,574 BTC for an estimated $1.53 billion after raising nearly $2 billion through sales of 0 percent convertible notes in November and December. Marathon disclosed in a Securities and Exchange Commission Form 8-K filing on December 19 that it purchased the latest tranche of BTC at an average price of $98,529 per Bitcoin.

Public companies in the United States use Form 8-K filings to disclose shareholder developments.

Marathon Holdings currently owns 44,394 BTC worth $4.45 billion while the leading cryptocurrency is trading at $100,151. The BTC miner also announced the buyback of approximately $263 million in notes. According to a Marathon post on X, the remaining note sale proceeds (about $132 million) will be used to purchase more Bitcoin.

Saylor’s Bitcoin playbook

Marathon, Hut 8, Riot and other BTC-centric startups have adopted a fundraising strategy popularized by Michael Saylor, chairman of MicroStrategy and a former crypto skeptic turned Bitcoin advocate.

The so-called “infinite money glitch” involves lending money in the form of forward share rights in exchange for capital to accumulate BTC. As the price of BTC increases, companies report BTC returns to highlight investment performance.

Critics such as analyst Jacob King have slammed Saylor’s playbook, claiming MicroStrategy’s approach is similar to a Ponzi scheme and could collapse if there is a sharp drop in Bitcoin’s price.

Saylor’s general response to these criticisms likened BTC to New York real estate in its early days. The head of MicroStrategy has frequently stated that Bitcoin, like New York properties, will appreciate in value indefinitely, allowing companies to continue lending to finance the purchase of more BTC. MicroStrategy plans to buy $42 billion worth of BTC before 2028, and Saylor said he never plans to sell.