Marathon Digital Purchases 703 Bitcoins, Totaling 6,474 BTC
Bitcoin mining company Marathon Digital (NASDAQ: MARA) has acquired an additional 703 Bitcoins through a $1 billion convertible note at a 0% interest rate, bringing its total Bitcoin holdings to 6,474 BTC. The latest purchase was made at an average price of $95,395 per coin, following an initial acquisition of 5,771 BTC. Since the start of 2024, Marathon Digital has reported a 36.7% yield on its Bitcoin investments.
Marathon Digital also increases its Bitcoin reserves through mining operations, totaling 34,797 BTC valued at approximately $3.3 billion. The company repurchased $200 million of its 2026 notes and plans to use the remaining $160 million from the convertible debt raise for future Bitcoin acquisitions during price dips.
Following MicroStrategy's approach, which has yielded a 59.3% return year-to-date, Marathon Digital is similarly raising funds through convertible debt offerings to finance Bitcoin purchases.
Year to date, $MSTR's treasury operations delivered a BTC Yield of 59.3%, providing a net benefit of ~112,125 BTC to our shareholders, or ~341 BTC per day. At $100K per BTC, that would equate to $11.2 billion for the year so far, or $34.1 million per day.
— Michael Saylor⚡️ (@saylor) November 25, 2024
Marathon Digital on US Mining Dominance
Under Donald Trump’s leadership, Marathon Digital advocates for the U.S. to establish a strategic Bitcoin reserve. The company emphasizes Bitcoin's decentralization, finite supply, and cross-border transferability as advantages over gold as a store of value. It argues that the U.S. must dominate its mining infrastructure to secure block space and hash rate, which could enhance financial sovereignty and global influence.
“By controlling hash rate, a nation can prioritize access to blockspace, preventing adversarial nations from censoring or manipulating its transactions. Conversely, failing to secure a sufficient share of blockspace and hash rate leaves the US vulnerable to external pressures in a world where Bitcoin’s importance as a financial and geopolitical tool is rapidly growing.”
MARA Stock Performance
MARA stock has risen by 42.1% in the past month, surpassing Bitcoin's 36% gains. Cantor Fitzgerald recently indicated that MARA presents a better value proposition than MicroStrategy Inc (NASDAQ: MSTR), noting that Marathon Digital trades at a 152% premium over its Bitcoin holdings. Unlike MicroStrategy, which buys Bitcoin at market rates, MARA mines Bitcoin at a 40% discount, enhancing its business model.
Cantor Fitzgerald highlighted MARA's operational efficiency and strategic positioning, suggesting it may outperform MicroStrategy in profitability metrics. Analysts have set a target price of $42 for MARA stock, as reported by Street Insider.