Marathon Digital Bitcoin Holdings Surge with $850M Note Offering; MARA Stock Soars 59%
In its latest press release issued on Tuesday, December 4, MARA Holdings revealed that Marathon Digital has completed an $850 million zero-interest convertible note issuance, with proceeds from it being used to purchase additional Bitcoin. The company also sold an additional $150 million worth of options to initial purchasers for purchase within 13 days of the issuance.
The notes were sold privately to qualified institutional buyers. MARA Holdings noted that it will use approximately $48 million of proceeds to repurchase approximately $51 million of existing convertible notes due 2026. The remaining proceeds will be used to purchase BTC and other operating expenses.
The news comes as Bitcoin reached the $100,000 milestone earlier today. There is speculation that Bitcoin could soon reach $125,000 by the end of the year amid a bull run.
MARA stock has seen strong buying interest since Donald Trump’s victory last month. Shares are up a whopping 59% on the monthly chart. Some market analysts believe that MARA will have better future gains than MSTR, given the current situation.
Notably, Marathon Digital added 6,484 Bitcoins between October 1 and November 30, 2024 alone, according to SEC filings. As of November 30, Marathon’s total Bitcoin reserves reached 34,959. Marathon’s Bitcoin reserves still lag far behind super Bitcoin stockist MicroStrategy, which held 279,420 Bitcoins as of November 10, 2024.
Just yesterday, President-elect Donald Trump officially nominated Paul Atkins as the next SEC Chairman, after which the flagship cryptocurrency broke through the key $100,000 level. As the leading cryptocurrency experiences an unprecedented surge, $870 billion asset manager Standard Chartered says Bitcoin will double to $200,000 by 2025.
Analyst Jeff Kendrick Underline So far this year, institutional buyers have purchased 683,000 Bitcoins through U.S. Bitcoin ETFs, with contributions from companies such as MicroStrategy and Marathon Digital. Notably, 245,000 of the inflows came after the U.S. presidential election.
“In 2025, we expect institutional flows to continue at or above 2024 rates,” point out Kendrick added: “MicroStrategy is on track to exceed its $42 billion three-year plan, so 2025 purchases should equal or exceed 2024 purchases.”
