In a significant development within the Bitcoin domain, MARA, formerly known as Marathon Digital, has taken a rather audacious step. On November 28, it was disclosed that the company had procured 6,474 BTC by means of its recent $1 billion convertible note offering, which carried a 0% interest rate. This comprised an extra 703 BTC that was bought on November 28, following the initial acquisition of 5,771 BTC on November 23. The average cost per coin for these purchases now stands at $95,395. Presently, MARA has 34,797 BTC in its treasury, amounting to a valuation of $3.3 billion.
Adhering to its strategic plan, MARA also reacquired a portion of its 2026 notes for $200 million. The firm intends to utilize the remaining $160 million from the debt raise to make additional Bitcoin purchases during price declines.
This tactic is reminiscent of MicroStrategy, which has been amassing Bitcoin using corporate debt since 2020. Recently, MicroStrategy issued $3 billion in senior convertible notes at 0% interest to finance Bitcoin acquisitions. Between November 18 and 24, the company obtained 55,000 BTC at an average price of $97,862 per coin, elevating its total holdings to 386,700 BTC.
Nevertheless, not everyone endorses this high-risk strategy. Detractors caution that employing debt to purchase Bitcoin might precipitate financial difficulties in the event of a sharp decline in Bitcoin’s price. Although MicroStrategy’s shares plummeted 25% on November 21, its repayment obligations will not materialize until 2028, affording it the opportunity to withstand market oscillations.
With MARA and MicroStrategy intensifying their Bitcoin bets, these actions could either herald a fresh wave of corporate enthusiasm for digital assets or a wager that has yet to yield dividends.
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