Marathon Digital Acquires Additional 703 Bitcoins Generating 36.5% BTC Yield

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As a seasoned researcher with a keen interest in digital assets and a background in finance, I find Marathon Digital’s latest move to be quite intriguing. With their recent acquisition of 703 more Bitcoins at an average price of $95,395 per coin, they have now accumulated a total of 6,474 BTC and a staggering treasury value of over $3 billion. This strategic move, combined with their operational efficiency and strategic positioning, has the potential to propel them ahead of their competitors, such as MicroStrategy Inc (NASDAQ: MSTR).

Marathon Digital, one of the major players in Bitcoin mining (NASDAQ: MARA), revealed the acquisition of an extra 703 Bitcoins, worth approximately $95,061 each. This purchase was facilitated through a recent $1 billion convertible note offer with zero interest rates. As a result, its accumulated Bitcoin holdings now stand at 6,474 BTC.

In a recent statement, the Bitcoin miner revealed they acquired an additional 703 Bitcoins at approximately $95,395 per unit. This follows their initial acquisition of 5,771 Bitcoins earlier on. Consequently, Marathon Digital has seen a 36.7% return on Bitcoin investments since the start of 2024, stemming from their Bitcoin transactions.

Besides acquiring Bitcoins from purchases, MARA additionally accumulates Bitcoins in its reserves through mining activities. In summary, this Bitcoin mining company currently holds a substantial amount of 34,797 BTC, equivalent to approximately $3.3 billion, in its treasury.

In addition, Marathon Digital has decided to buy back $200 million worth of its 2026 notes, and intends to use about $160 million leftover from its convertible debt offering to purchase more Bitcoin when prices drop at more advantageous rates in the future.

Following in Microstrategy’s footsteps with their Bitcoin approach, MARA has been employing similar tactics by securing funds through convertible debt offerings and utilizing these resources to acquire Bitcoin. By adopting this strategy, MicroStrategy has garnered a 59.3% Bitcoin return on investment so far this year.

So far this year, Mastercard’s treasury activities have yielded a Bitcoin Return of approximately 59.3%. This has resulted in an additional 112,125 Bitcoins for our shareholders, which is equivalent to about 341 Bitcoins each day. Given the current value of $100,000 per Bitcoin, this translates to a staggering $11.2 billion for the year to date, or approximately $34.1 million every day.

— Michael Saylor⚡️ (@saylor) November 25, 2024

Marathon Digital Explains the Importance of US Dominance in Mining

Under Donald Trump’s administration, Marathon Digital has advocated for the U.S. to actively explore the idea of holding a strategic reserve of Bitcoin. In a recent article on the X platform, Marathon Digital highlighted the unique aspects of Bitcoin such as its decentralized nature, limited supply, and ability to be easily transferred across borders, which make it a robust alternative to gold for long-term value storage.

The company argues that not only should the U.S. own Bitcoins, but it should also control the mining operations of Bitcoin, focusing especially on securing access to data storage (block space) and computing power (hash rate).

It emphasized that control over critical resources like Bitcoin’s block space and hash rate could have a significant impact on US financial sovereignty and its ability to maintain global influence in the digital era. It said:

Managing hash rate gives a country the power to determine access to blocks, thereby shielding its transactions from potential censorship or manipulation by hostile nations. On the other hand, not having enough control over blockspace and hash rate could expose the US to external influences, especially as Bitcoin’s role as a financial and geopolitical instrument continues to expand rapidly.

MARA Stock Remains on Investors’ Radar

Additionally, the share price of MARA has noticeably risen due to investor enthusiasm, with a significant increase of 42.1% over the last month. This surge places it above $26, while Bitcoin’s value has also climbed by approximately 36%.

This past week, it was mentioned by financial behemoth Cantor Fitzgerald that Marathon Digital (MARA) has a more attractive value proposition compared to MicroStrategy Inc (NASDAQ: MSTR). Furthermore, they pointed out that the current market price of Marathon Digital is inflated by 152% in comparison to its Bitcoin holdings.

While MicroStrategy purchases Bitcoin directly on the open market, MARA Mining Services gains an edge by mining Bitcoin at a 40% lower rate compared to the current market value, thus creating a substantial advantage in their operational strategy.

Moreover, Cantor pointed out MARA’s operational excellence and advantageous positioning, implying that the company could potentially outperform MicroStrategy (MSTR) in terms of profitability indicators. Following this assessment, analysts have projected a price target of $42 for MARA shares, according to Street Insider.

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2024-11-28 13:51