Bitcoin mining giant Marathon Digital has made headlines with its latest move, purchasing an additional $249 million worth of Bitcoin. This bold acquisition follows a successful $300 million senior note offering, which the company leveraged to boost its Bitcoin reserves to over 25,000 BTC.
On August 14, Marathon disclosed that it acquired around 4,144 Bitcoin at an average price of $59,500 each. The company emphasized that this purchase aligns with its strategic goal of accumulating Bitcoin as a key treasury asset. With this latest buy, Marathon’s Bitcoin reserves have reached a substantial level, underscoring its commitment to a long-term “hodl strategy.”
Marathon raised approximately $292.5 million from its convertible senior notes, which carry a 2.125% annual interest rate and are due in September 2031. The notes are convertible into cash, Marathon stock, or a combination of both. The company indicated that the remaining funds from the note sales would be used for further Bitcoin purchases and potentially for strategic acquisitions.
This latest purchase follows Marathon’s July acquisition of 2,282 BTC for $124 million, reinforcing its aggressive accumulation strategy. However, the company’s shares have seen a decline, closing down 2.26% at $15.14 on the day of the announcement. Marathon’s share price has dropped nearly 34% year-to-date, reflecting broader challenges in the crypto mining sector.
Marathon’s recent financial performance has also fallen short of expectations, with second-quarter earnings missing Wall Street estimates. Despite generating $145.1 million in revenue, the figure was 9% below forecasts. The company’s profitability faces additional pressure from record-low mining profitability, following Bitcoin’s recent halving, which has further squeezed margins for large public miners like Marathon.
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