Bitcoin mining company Marathon Digital Holdings (MARA) has significantly bolstered its reserves, increasing its total Bitcoin holdings to 40,435 BTC, valued at approximately $3.9 billion. This achievement is the result of strategic acquisitions and an aggressive HODL policy, solidifying MARA’s standing as the second-largest public Bitcoin holder globally.
Strategic Bitcoin Acquisitions
In recent months, MARA purchased 11,774 BTC for $1.1 billion, averaging a price of $96,000 per Bitcoin. These acquisitions were financed through zero-coupon convertible note offerings, showcasing the company’s bold approach to leveraging capital markets to grow its reserves.
Earlier in the quarter, MARA also acquired 6,484 BTC for $618 million in cash, averaging $95,352 per Bitcoin. This consistent investment strategy reflects MARA’s confidence in Bitcoin’s long-term value, despite its price volatility.
Key Milestones in Bitcoin Mining
MARA recently achieved a groundbreaking milestone by reaching an energized hashrate of 50 exahashes per second (EH/s), a dramatic increase from 36.9 EH/s reported in Q3. This makes MARA the first public Bitcoin miner to achieve such capacity, marking a significant step in operational growth.
However, the announcement coincided with a 4.4% drop in MARA’s stock, closing at $22.81. Despite this, the stock has risen 18% over the past six months, reflecting broader market resilience.
The HODL Policy: Bitcoin as a Reserve Asset
Since adopting its HODL strategy in July, MARA has retained all Bitcoin it mines and further expanded its reserves through targeted acquisitions. CEO Fred Thiel has been vocal about Bitcoin’s potential as a reserve asset, urging corporations and governments to adopt it.
This strategy mirrors MicroStrategy, the largest public Bitcoin holder, with 423,650 BTC worth over $40 billion. MARA’s holdings now account for nearly 0.2% of Bitcoin’s total supply, emphasizing its growing influence in the crypto market.
Financial Performance and Challenges
Despite its aggressive expansion, MARA reported a net loss of $124.8 million for Q3, a stark contrast to the $390,000 loss reported during the same period last year. The company has been actively raising funds through convertible senior note offerings, including a recent $850 million offering upsized from an initial $700 million.
These funds have been strategically allocated to:
- Repurchase existing notes.
- Purchase Bitcoin.
- Set aside $160 million for future acquisitions during price dips.
Bitcoin Market Outlook
Bitcoin’s price has experienced volatility, peaking at $104,000 on December 5 before stabilizing at $96,300 in recent trading. MARA’s average acquisition price aligns closely with the current market price, showcasing its ability to time the market effectively.
Looking Ahead
MARA remains focused on operational growth, with plans to expand mining capacity using its existing infrastructure. Despite challenges, including market volatility and financial losses, the company’s commitment to Bitcoin investment underscores its long-term vision.
As the cryptocurrency market continues to evolve, MARA’s bold strategy positions it as a key player in shaping the future of Bitcoin mining and adoption.
MARA Strengthens Bitcoin Holdings Amid Market Volatility was originally published in The Capital on Medium, where people are continuing the conversation by highlighting and responding to this story.