Marathon Digital Holdings (MARA), one of the largest Bitcoin mining companies, has made substantial progress in expanding its cryptocurrency reserves. In November, the firm acquired 6,474 Bitcoin (BTC), bringing its total holdings to 34,794 BTC, valued at approximately $3.3 billion at a $95,000 spot price.
Strategic Bitcoin Purchases Funded by Zero-Interest Notes
The recent acquisitions were financed through Marathon’s $1 billion zero-interest convertible senior note offering, yielding $980 million after costs. The company allocated $200 million to repurchase some 2026 notes and reserved $160 million for additional Bitcoin purchases during potential price dips.
Marathon CEO Fred Thiel highlighted Bitcoin’s scarcity and its value as a hedge against inflation. He emphasized that every company should consider holding Bitcoin on its balance sheet.
Second-Largest Corporate Bitcoin Holder
With this latest acquisition, Marathon solidified its position as the second-largest corporate Bitcoin holder. Although trailing MicroStrategy, which controls 1.8% of Bitcoin’s total supply, Marathon’s holdings account for 0.16%.
Public companies as a whole are increasingly investing in Bitcoin. Year-to-date, their collective holdings surged from 272,774 BTC to 508,111 BTC, with November seeing over 143,800 BTC added.
Broader Adoption Among Public Companies
Marathon isn’t alone in aggressively acquiring Bitcoin. MicroStrategy recently made a record-breaking single-week purchase of 130,000 BTC. Other companies, like Rumble and Genius Group, have also joined the trend.
- Rumble: Allocated $20 million of its cash reserves to Bitcoin.
- Genius Group: Acquired $14 million in BTC, with plans to expand holdings to $120 million.
Marathon’s Diversification Strategy
Beyond mining, Marathon is exploring new opportunities in artificial intelligence (AI) and other emerging technologies. This diversification aims to reduce its reliance on Bitcoin’s price volatility.
In 2024, the company raised $1.25 billion across two funding rounds to expand mining operations and boost reserves. Its strategic efforts have been well-received, with its stock gaining nearly 14% year-to-date.
Challenges Amid Growth
Despite its strong positioning, Marathon faces challenges. The firm missed analysts’ Q3 earnings expectations, reporting a $0.24 per share loss versus the anticipated $0.23. This marked an earnings surprise of -4.35%.