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Highlights
- Bitcoin miner MARA purchased 15,574 BTC for $1.53 billion, increasing its total holdings to 40,435 BTC
- The acquisition was funded through proceeds from MARA's zero-coupon convertible notes offerings
- Bitcoin prices fell 5% amid Powell’s hawkish comments on interest rates and speculation over Bitcoin’s role as a reserve asset.
Bitcoin miner MARA Holdings announced that it has bought 15,574 BTC with a total value of $1.53 billion, bringing its total number of Bitcoin held to 44,394 BTC, making the firm the publicly traded company with the largest reserves of Bitcoin.
Bitcoin Miner MARA Buys 15,574 BTC for $1.53 Billion
In a filing to the SEC, MARA said the acquisition was financed with proceeds from its recently completed zero-coupon convertible notes offerings. The firm also said it had repurchased about $263 million in aggregate principal amount of its existing convertible notes due 2026. It intends to use the remaining proceeds of the notes to acquire more Bitcoin.
MARA raised $1.925 billion from 0% convertible notes in November and December. Using the proceeds from its zero-coupon convertible notes offerings, MARA has acquired 15,574 BTC for ~$1.53 billion at ~$98,529 per #bitcoin and repurchased ~$263 million in aggregate principal amount… pic.twitter.com/ycGRk9BYfv
— MARA (@MARAHoldings) December 19, 2024
The company announced that it had acquired the Bitcoins at an average price of $96,000 per BTC. MARA also pointed out a Bitcoin yield of 12.3% QTD and 47.6% YTD. With this transaction, MARA now possesses 40,435 BTC, worth about $3.9 billion at current market prices.
The move is reminiscent of a strategy popularized by MicroStrategy’s Michael Saylor, focused on large-scale Bitcoin accumulation. Saylor recently stated he sees MARA Holdings entering Nasdaq 100 Index soon.
Buying Spree After the Price Drop
MARA announced the purchase just a day after Federal Reserve Chair Jerome Powell clarified that the central bank cannot own Bitcoin.
The timing of the news coincided with a plunge in markets. Bitcoin fell 5% in its biggest plunge in more than three months as a wider sell-off was sparked by the Fed’s hawkish comments. The comments mentioned the trajectory of interest rates and the scant possibility of rate reductions in 2025.
For a while, it approached, but then pulled back from, a $100,000 perch. This was the impact of both, Powell’s hawkish views and unease of Bitcoin as a reserve asset.
Institutional Interest Soaring
Hut 8 (HUT) joined the group of Bitcoin miners buying Bitcoin on the open market along with giants like MicroStrategy and MARA Holdings.
Furthermore, the company based in Miami announced on Thursday buying 990 BTC for an average price of $101,710 each. This latest purchase increased Hut 8’s total Bitcoin in reserve to 10,096 BTC, worth close to $1 billion. This puts the company among the top 10 largest corporate Bitcoin holders.
Recently, RIOT bought 667 BTC at an average price of $101,135 on December 16.
For Bitcoin miners, buying large amounts of Bitcoin on the open market has proved a boon. Therefore, it has opened up new fundraising avenues in a period marked by pressures on profits after the recent Bitcoin halving.
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