• Marathon Digital acquired 6,474 BTC in November, raising total holdings to 34,794 BTC valued at US$3.3B.
  • The purchase was funded by a US$1B zero-interest convertible senior note, with US$160M reserved for future Bitcoin buys.
  • Marathon’s strategy reflects confidence in Bitcoin but raises concerns about debt-fueled acquisitions amid potential market volatility.

Marathon Digital Holdings (MARA), a leading publicly traded Bitcoin mining firm, has significantly expanded its cryptocurrency reserves by acquiring 6,474 Bitcoin (BTC) in November. 

The purchase brings the company’s total holdings to 34,794 BTC, valued at approximately US$3.3B (AU$5.07B), based on a Bitcoin price of US$95,000 (AU$146K).

Related: MicroStrategy Overtakes Tesla, Nvidia as America’s Most Traded Stock

These acquisitions were made possible following Marathon’s successful US$1B (AU$1.54B) zero-interest convertible senior note sale. Of the US$980M (AU$1.5B) in net proceeds, US$200M (AU$307M) was allocated to repurchase a portion of the company’s 2026 notes, reflecting a balanced approach to both debt management and asset accumulation.

Advertisement

While the company’s holdings are considerable, they only account for 0.16% of Bitcoin’s total supply, while MicroStrategy controls a much larger share at 1.8%. To give an idea, MicroStrategy acquired 55,500 BTC for US$5.4B (AU$8.37B) a few days ago, raising its total holdings to 386,700 BTC, valued at US$38B (AU$57.3B). 

An Aggressive Approach Towards Bitcoin Purchases

MARA’s recent actions highlight the increasing trend of public companies adopting Bitcoin as a treasury asset. These strategies showcase confidence in Bitcoin’s long-term potential and signal a shift in how corporations leverage digital assets to manage their finances.

However, as corporate Bitcoin holdings grow, questions about the sustainability of debt-fueled acquisitions remain. Both MARA and MicroStrategy exemplify a high-risk, high-reward approach to cryptocurrency investment, and it could also backfire, affecting their stocks and leaving investors wondering if their prices are overvalued.

Related: Bitcoin Resumes Rally, Eyes $100K Target as Altseason Hits Roadblock: Analyst

Some analysts have labeled MicroStrategy’s reliance on debt financing as risky, pointing out the potential for financial instability if Bitcoin’s price declines sharply. Despite this, the company’s debt repayment obligations are deferred until 2028, giving it a window to navigate market volatility and solidify its position.