In summary
- Marathon Digital purchased 6,484 Bitcoin for $618 million, paying an average of $95,352 per BTC.
- The company will raise up to $700 million in private offerings to buy back debt and acquire more Bitcoin.
- With this purchase, Marathon reached a Bitcoin treasury of $3.3 billion, making it the second largest corporate holder.
Bitcoin Mining company Marathon Digital paid $618 million in cash to acquire approximately 6,484 Bitcoin, the company reported in a new SEC filing.
The Florida company appears to have bought near the high, paying an average of $95,352 per BTC including fees and expenses. As of this writing, Bitcoin price has settled just below $95,000 after peaking above $98,000 this morning, according to data from CoinGecko.
The company’s shareholders seem to welcome this news. As of Monday afternoon during EU trading hours, MARA shares were 1.9% higher than when trading closed Friday afternoon.
Marathon shares, which trade on the Nasdaq, closed at $26.85 on Friday after losing 2%. But the news of the Bitcoin purchase seems to have almost completely erased that drop.
The company also announced that starting today it will raise up to $700 million in private offerings to institutional buyers.
“MARA expects to use up to $50 million of the net proceeds from the sale of the notes to repurchase a portion of its existing convertible notes due 2026 (the ‘existing 2026 convertible notes’) in privately negotiated transactions, and the remainder of The net proceeds will be used to acquire additional Bitcoin and for general corporate purposes,” he wrote in the SEC filing, “which may include working capital, strategic acquisitions, expansion of existing assets, and repayment of additional debt. and other outstanding obligations”.
This is not the first time that Marathon would issue convertible notes to buy back some of its debt and increase its Bitcoin treasury. In November, the Bitcoin miner announced an $850 million offer, saying it reserved the option to expand that offer to $1 billion.
The latest Bitcoin acquisition puts Marathon Digital’s corporate Bitcoin treasury at $3.3 billion. This makes it the second largest corporate holder of Bitcoin, although it is a far cry from the giant MicroStrategy and its aggressive Bitcoin buying.
The software company founded by Bitcoiner Michael Saylor has accumulated almost $37 billion in BTC, according to Bitcoin Treasuries.
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