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In summary
- MARA and Hut 8 expanded their Bitcoin reserves, accumulating a total of 16,564 BTC valued at more than $1.63 billion.
- MARA purchased 15,574 BTC for $1.53 billion, while Hut 8 purchased 990 BTC for $100 million, both at higher than current prices.
- The shares of both miners fell more than 5% reflecting the correction of the crypto market, despite their strategic growth.
Bitcoin Mining companies MARA (formerly Marathon Digital) and Hut 8 announced substantial Bitcoin purchases on Thursday, as more and more companies look to accumulate the leading Cryptocurrency in their treasuries.
MARA expanded a Bitcoin purchase previously announced last week, increasing its total purchases to 15,574 Bitcoin for a total price of approximately $1.53 billion. Last week, the company revealed the first part of the purchase, acquiring 11,774 BTC for $1.10 million. Thursday’s announcement notes that the company added another 3,800 BTC to its treasury at a price of around $400 million.
The added total increases MARA’s treasury reserve to 44,394 BTC, worth more than $4.4 billion. Meanwhile, Hut 8 said it purchased 990 Bitcoin at a price of approximately $100 million, recording a gigantic reserve of 10,096 BTC (over $1 billion).
MARA’s purchase comes after two separate convertible note offerings in which it raised nearly $2 billion between November and December. The company, which trades on Nasdaq under the symbol MARA, has nearly tripled its Bitcoin holdings over the past calendar year, according to its most recent SEC filings.
While Marathon’s average purchase price was around $98,529 per Bitcoin, Hut 8 acquired its 990 Bitcoin for an average cost of $101,710, both above Bitcoin’s current price of $97,951.
“We believe deeply in our operating business and that building a strategic Bitcoin reserve will strengthen our financial position as we pursue large-scale growth initiatives in energy and digital infrastructure,” Asher Genoot, CEO of Hut 8, said in a statement.
The two Bitcoin miners are among the top six in Bitcoin holdings among publicly traded companies, according to data from Bitcoin Treasuries. MARA is down more than 5% on the day, however, Hut 8 is down almost 7%, reflecting a major drop in the cryptocurrency market.
Bitcoin mining is the process of adding and verifying blocks on the Bitcoin Blockchain, a process that requires intensive energy and hardware resources. Typically, miners today are large companies with warehouses full of expensive and advanced computers, since individual miners are rarely able to win blocks, although it does happen occasionally.
Edited by Andrew Hayward
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