Marathon Digital Holdings (MARA) a leading Bitcoin mining firm in the United States recently purchased 11,774 Bitcoin for around $1.1 billion.
The Mining firm, which is up there with Microstrategy as one of the largest corporate holders of Bitcoin, made the recent purchase days after Microstrategy announced it acquired 21,500 BTC in the first week of December.
Marathon Digitals announced its latest acquisition via its official X page revealing the number of BTC bought, the average price, and the percentage yield.
“Using the proceeds from its zero-coupon convertible notes offerings, MARA has acquired 11,774 BTC for ~$1.1 billion at ~$96,000 per #bitcoin and has achieved BTC Yield of 12.3% QTD and 47.6% YTD. As of 12/9/2024, we hold 40,435 BTC, currently valued at $3.9 billion based on a spot BTC price of $96,500.” Mara holdings tweeted
Despite being a leading Bitcoin mining firm in the US, Marathon Digital augments the BTC it benefits from its mining operation by direct purchases of the asset.
The mining firm now holds 40,435 BTC valued at $3.6 billion based on a market price of $96,500. Mara Holdings joins the likes of Microstrategy and Riot platforms on a Bitcoin purchase spree.
In November the firm purchased 6,474 BTC and announced its intention to acquire more. Riot platforms offered $500 million in convertible notes to buy BTC too.
Microstrategy, Mara Holdings, and Riot Platforms all make up the top 5 list of largest corporate holders of Bitcoin.
Buying the Up
The recent acquisition spree by US companies has opened a discussion around a new trend amongst Bitcoin whales.
- The crypto market is used to seeing whales buy Bitcoin whenever the price for BTC dips. This was the usual modus operandi.
- However, the trend has changed with Bitcoin whales now acquiring Bitcoin even when the price for the asset is on the high side.
- This new trend has been coined “Buying the Up” as opposed to the usual strategy which was “Buying the Dip”.
- Three US companies spent a whopping $3.6 billion in the first week of December buying Bitcoin.
- The primary crypto asset hit an all-time high of $103,637 during this period but has retraced to $100,222 at the time of this report.
What to Know
- Whales are large holders of a crypto asset whose on-chain activity can influence the price action of the said crypto asset. Microstrategy, Mara Digital and Riot platforms are all Bitcoins whales in their own right owning large stashes of the crypto asset running into billions.
- Michael Saylor the Chairman of Microstrategy owns over $1 billion personal stash of Bitcoin.