MARA Increases BTC Holdings to $3.3B via $1B Convertible Note Offering

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

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

MARA’s BTC Holdings

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

After transaction costs, the mining company still has approximately $160 million in remaining revenue 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 offering of $1 billion of 0% convertible senior notes due 2030 last week. The company indicated that it intends to use approximately $199 million of the proceeds to repurchase its outstanding convertible notes due 2026, while the remaining funds will be designated for further purchases of Bitcoin and general corporate purposes.

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

The company’s shares closed up 7.81% at $26.92 on November 28, according to data from Google Finance. 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 has a market capitalization of $9 billion.

Parallels and Risks in Bitcoin Buying Strategy

MARA’s decision to finance Bitcoin acquisitions through convertible notes is similar to the approach of MicroStrategy, which has used corporate debt to accumulate Bitcoin since 2020.

In its most recent move, MicroStrategy issued $3 billion in senior convertible notes at 0% interest, then used 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 of November 21-27, as the price of BTC corrected, its shares fell 35% from a high of $535 to $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 price of the cryptocurrency falls. However, MicroStrategy won’t face repayment obligations until 2028, which should give the company plenty of time to navigate and manage short-term market downturns.

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