Marathon Digital, one of the leading Bitcoin mining firms, has significantly bolstered its Bitcoin reserves with a major purchase.
The company recently acquired $249 million worth of Bitcoin, bringing its total holdings to over 25,000 BTC.
This move comes shortly after Marathon raised $300 million through a senior note offering, with part of the proceeds earmarked for Bitcoin acquisition.
On August 14, Marathon announced it had purchased 4,144 Bitcoin at an average price of $59,500 per BTC.
The acquisition is part of the company’s broader strategy to strengthen its position in the cryptocurrency market by holding Bitcoin as a strategic asset.
CEO Fred Thiel has been vocal about Marathon’s “hodl strategy,” a term popularized in the crypto community that refers to holding onto Bitcoin for the long term.
This is not Marathon’s first major Bitcoin purchase. In July, the company bought 2,282 BTC for $124 million, signalling a consistent approach to building its reserves.
Thiel has emphasized Bitcoin’s role as a premier treasury asset, and Marathon’s recent actions reflect its commitment to this belief.
The funds for the latest purchase were raised through the sale of convertible senior notes, due in September 2031 and carrying an annual interest rate of 2.125%.
The notes are convertible into cash, Marathon stock, or a combination of both.
While $249 million was used to buy Bitcoin, the remaining proceeds will be allocated for other corporate purposes, potentially including strategic acquisitions.
Despite Marathon’s aggressive accumulation of Bitcoin, the company has faced some financial challenges.
Earlier in August, it reported second-quarter earnings that fell short of Wall Street expectations, with revenues of $145.1 million, 9% lower than projected.
Additionally, Marathon’s share price has declined by nearly 34% year-to-date, reflecting broader challenges in the crypto-mining industry.
The industry has been under pressure following the recent Bitcoin halving, which reduced mining rewards by half, making profitability more difficult to achieve.
As a result, miner hash price—a key measure of mining profitability—hit record lows in August.
Marathon, known for having the highest all-in mining costs among public miners, may face continued profitability challenges despite its substantial Bitcoin holdings.
