MARA Raises $1.9B in Two Months, Acquires 15.5k Bitcoin at $98.5k Average

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As a seasoned analyst with over two decades of experience in the financial markets, I find myself increasingly intrigued by the meteoric rise of MARA Holdings Inc. Their strategic approach to Bitcoin mining and acquisition is not only innovative but also strategically sound, given the current market dynamics.

On Wednesday, December 18, MARA Holdings Inc., a leading U.S.-based cryptocurrency mining corporation listed on NASDAQ under the symbol MARA, disclosed its Bitcoin (BTC) operations details to the United States Securities and Exchange Commission (SEC).

As per Form 8-K, MARA Holdings’ Bitcoin Yield stood at 22.5% from January 1, 2024, to December 18, 2024. For the year so far, the company has reported a significant Bitcoin Yield of approximately 60.9%.

As a researcher, I’d like to share that the company disclosed it successfully secured $1.925 billion through the issuance of 0% convertible notes in November and December of 2024. Out of these funds, they chose to invest $1.53 billion, purchasing a total of 15,574 Bitcoins at an average price approximately equal to $98,529 per Bitcoin.

The business employed approximately $263 million from the funds they raised towards buying back their convertible notes that mature in 2026. Any leftover funds from these earnings are anticipated to be invested in purchasing additional Bitcoins. As of December 18, the company owned 44,394 Bitcoins, which were appraised at around $4.45 billion, considering a spot price of roughly $100,000 per Bitcoin.

This month, the company finalized the purchase of approximately 11,774 Bitcoins, worth around $1.1 billion. Importantly, MARA Holdings expanded its convertible senior notes offering from $750 million to $850 million, giving private investors the chance to buy an extra $159 million.

Despite the $9.9 billion firm using share dilution for Bitcoin purchases, its future performance is likely to closely follow that of Bitcoin in the long term. Remarkably, MARA shares have surged by more than 37% over the past three months, currently trading at approximately $21.10 as we speak.

Impact of MARA Holdings’s Bitcoin Strategy

Institutional investors continue to show strong interest in Bitcoin, viewing it as a protective measure against inflation and the devaluation of traditional currencies. Recent data from exchange platforms reveals that approximately 140,000 Bitcoins have been withdrawn from these exchanges over the past month, leaving roughly 2.23 million Bitcoins currently held on them.

An increasing number of global companies are emulating MicroStrategy Inc.’s (NASDAQ: MSTR) approach by incorporating Bitcoin into their financial records. In the U.S., there’s been a surge in individual investors buying Bitcoin via spot BTC ETFs, with these holdings now exceeding the original Bitcoin stash of Satoshi Nakamoto, estimated to be around 1.1 million coins.

As a result, it’s expected that the price of Bitcoin will keep increasing during the next few months due to the ongoing imbalance between demand and supply, which is becoming more pronounced.

As an analyst, I’m observing a growing trend among nations: they are actively exploring methods to establish a strategic Bitcoin reserve promptly. In fact, the forthcoming Trump administration has expressed ambitions to make significant strides in the cryptocurrency sector to maintain a competitive edge.

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2024-12-19 20:51