Marathon Digital Acquires Bitcoin Amidst Market Fluctuations

According to Decrypt, Bitcoin mining company Marathon Digital has made a significant acquisition, purchasing approximately 6,484 Bitcoin for $618 million in cash. This transaction was detailed in a recent SEC filing by the Florida-based company. Marathon Digital's purchase price averaged $95,352 per Bitcoin, including fees and expenses, suggesting the acquisition occurred near the market's peak. Currently, Bitcoin's price has stabilized just below $95,000, following a brief surge above $98,000 earlier in the day, as reported by CoinGecko.

The news of this substantial Bitcoin purchase has positively impacted Marathon Digital's stock performance. As of Monday afternoon during European trading hours, shares of Marathon, which are listed on the Nasdaq under the ticker MARA, rose by 1.9% compared to their closing price on Friday. The stock had closed at $26.85 on Friday, reflecting a 2% decline, but the announcement of the Bitcoin acquisition appears to have reversed this dip.

In addition to the Bitcoin purchase, Marathon Digital has announced plans to raise up to $700 million through private offerings to institutional investors. The company intends to allocate up to $50 million of the net proceeds from these offerings to repurchase a portion of its existing convertible notes due in 2026. The remaining funds will be used for acquiring additional Bitcoin and for general corporate purposes, which may include working capital, strategic acquisitions, expansion of existing assets, and debt repayment.

This move is not Marathon Digital's first foray into issuing convertible notes to manage its debt and expand its Bitcoin holdings. In November, the company announced an $850 million offer, with the option to increase it to $1 billion. With this latest acquisition, Marathon Digital's corporate Bitcoin treasury now stands at $3.3 billion, making it the second-largest corporate holder of Bitcoin. However, it remains a distant second to MicroStrategy, a software company led by Michael Saylor, which holds nearly $37 billion worth of Bitcoin, according to Bitcoin Treasuries.

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