Marathon Digital Prepares for $850 Million of Bitcoin Purchase, $125,000 BTC Ahead?
Highlights
- Marathon Digital (MARA) successfully closed its $850 million convertible note for accelerating Bitcoin buying.
- Bitcoin reached a new all-time high, with analysts eying $125,000 next.
- Institutional investors have acquired 683,000 BTC this year including purchases by Bitcoin ETFs, MSTR, MARA, etc.
- Standard Chartered predicts that Bitcoin's price could hit $200,000 by the end of 2025.
Bitcoin miner Marathon Digital (NASDAQ: MARA) has recently completed its $850 million convertible note offering at 0% interest, the proceeds of which shall go for additional Bitcoin purchases. The announcement comes just when BTC’s price smashed past the $100K milestone earlier today hitting a new all-time high. Speculations have started pouring in for BTC price to hit $125,000 by the year-end as part of the Christmas rally.
Marathon Digital Closes $850 Million Offering
Bitcoin miner Marathon Digital (NASDAQ: MARA) announced the closure of its $850 million convertible note offering at 0.0% interest, on Tuesday, December 4. Apart from the principal notes, the company also sold an additional $150 million option granted to initial purchasers for purchase within a 13-day period following the issuance.
The notes were sold privately to qualified institutional buyers. MARA Holdings stated that it will use approximately $48 million of the proceeds to repurchase roughly $51 million in existing convertible notes due 2026. The remaining proceeds will go towards the purchase of BTC and other operational expenses.
The development comes soon after the Bitcoin miner announced accelerating its Bitcoin buying plan. Drawing a leaf from the playbook of MicroStrategy, Marathon Digital is making similar moves of fundraising to source its BTC purchases.
The MARA Stock has seen strong buying interest ever since Donald Trump’s victory last month. On the monthly chart, the stock price is up by a massive 59%. Following yesterday’s investment, the stock has gained an additional 6% in the pre-market trading session on Thursday, eyeing a move above $27. Some market analysts believe that considering the current situation, MARA is better than MSTR for future gains.
Bitcoin to $125,000 By Year End?
Earlier today, the Bitcoin price smashed past the $100K milestone soon after Donald Trump announced the appointment of Paul Atkins as the next US SEC chair. As of press time, BTC is trading 6.68% up at $102,675 with its market cap crossing $2 trillion.
This shows that Bitcoin price is very much on the trajectory to $125,000 by the year-end, as predicted by Standard Chartered earlier in September. However, the banking giant now predicts that institutional inflows into Bitcoin can surge further in 2025.
Bitcoin flows have been heavily influenced by institutional investors this year, a trend that is expected to continue, according to Geoff Kendrick, head of research at Standard Chartered. In a recent note, Kendrick suggested that BTC could potentially reach $200,000 by the end of 2025, following its recent surge past $100,000.
He also highlighted that institutional buyers have acquired 683,000 BTC year-to-date through U.S. Bitcoin ETFs, along with contributions from MicroStrategy, Marathon Digital, etc. Notably, 245,000 bitcoins of these inflows occurred following the U.S. presidential election.
“In 2025, we expect institutional flows to continue at or above the 2024 pace,” said Kendrick. All eyes are now on Microsoft’s shareholders’ vote on whether or not they would adopt MicroStrategy’s Bitcoin playbook.
- FOMC Meeting: Fed Makes First Rate Cut of the Year, Lowers Rates by 25 Bps
- “Beyond a Centralized Exchange” Bitget CEO Unpacks Universal Exchange Vision on 7-Year Anniversary
- Breaking: CME Group to Launch Solana and XRP Futures Options as Institutional Demand Grows
- Franklin Templeton CEO Dismisses 50bps Rate Cut, Citing ‘Robust Economy’ Ahead of FOMC
- Bitget Unveils ‘Universal Exchange’ Era to Mark 7-Year Anniversary
- Shiba Inu Price Set to Soar as Exchange Reserves Dive Amid SHIB ETF Chatter
- Pepe Coin Price Prediction as Whale Moves $25M From Robinhood- Is a Breakout to $0.00002 Next?
- XRP Price Prediction as Market Longs Hit 78% amid VivoPower Treasury Expansion Launch — Is $4 Next?
- SHIB Price Forecast: Taker Buys Lead as Developers Counter Shibarium Exploit
- Solana Price Set for a 25% Jump as Open Interest Nears a $20 Billion Milestone
- Bitcoin Price Prediction as Fed Decision Nears — Dump Before the Next Rally?
Why Trust CoinGape
CoinGape has covered the cryptocurrency industry since 2017, aiming to provide informative insights Read more…to our readers. Our journal analysts bring years of experience in market analysis and blockchain technology to ensure factual accuracy and balanced reporting. By following our Editorial Policy, our writers verify every source, fact-check each story, rely on reputable sources, and attribute quotes and media correctly. We also follow a rigorous Review Methodology when evaluating exchanges and tools. From emerging blockchain projects and coin launches to industry events and technical developments, we cover all facets of the digital asset space with unwavering commitment to timely, relevant information.
Premium Partners
