Key Points
- Marathon Digital has bought an additional 703 Bitcoins, bringing its total Bitcoin holdings to 6,474 BTC.
- The Bitcoin miner’s total Bitcoin assets, including those from mining operations, amount to 34,797 BTC, valued at $3.3 billion.
Bitcoin mining heavyweight Marathon Digital (NASDAQ: MARA) recently disclosed the acquisition of a further 703 Bitcoins.
This purchase was made through its recent $1 billion convertible note at a 0% interest rate. As a result, the total number of Bitcoins purchased by the company has now hit 6,474 BTC.
Marathon Digital’s Bitcoin Investments
Marathon Digital revealed that it bought the additional Bitcoins at an average cost of $95,395 per coin. This follows the company’s initial purchase of 5,771 BTC.
Since the start of 2024, Marathon Digital has reported a 36.7% BTC yield on its Bitcoin purchases.
In addition to its Bitcoin purchases, Marathon Digital also accumulates Bitcoins through its mining operations. The total Bitcoin assets of the company, including those from mining, amount to 34,797 BTC, valued at a staggering $3.3 billion.
Marathon Digital also repurchased $200 million of its 2026 notes and plans to use the approximate $160 million remaining from its convertible debt raise to buy more Bitcoin during future price dips at more favorable levels.
Marathon Digital’s Strategy
Marathon Digital has been following a strategy similar to Microstrategy’s, raising funds through convertible debt offerings and using the proceeds to buy Bitcoin. MicroStrategy has generated a BTC yield of 59.3% year-to-date through this strategy.
Under the leadership of Donald Trump, Marathon Digital has urged the US to aggressively pursue the option of having a strategic Bitcoin reserve. The company highlights the qualities of Bitcoin, such as decentralization, finite supply, and cross-border transferability, which make it a strong alternative to gold as a store of value.
Marathon Digital argues that in addition to holding Bitcoin, the United States must also establish dominance over its mining infrastructure, particularly in securing block space and hash rate.
The company emphasizes 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.
Marathon Digital Stock Performance
The stock price of Marathon Digital has seen a strong uptick following investor optimism. Over the past month, the stock has gained 42.1%, surging past $26, compared to Bitcoin’s 36% gains.
Earlier this week, finance giant Cantor Fitzgerald stated that Marathon Digital offers a better value proposition than MicroStrategy Inc (NASDAQ: MSTR). They added that Marathon Digital is currently trading at a 152% premium over its Bitcoin holdings.
Unlike MicroStrategy, which acquires Bitcoin at the spot market rate, Marathon Digital benefits from its ability to mine Bitcoin at a 40% discount to the spot price, offering a significant advantage in its business model.
Moreover, Cantor highlighted Marathon Digital’s operational efficiency and strategic positioning, suggesting the company could surpass MicroStrategy in profitability metrics. Based on these factors, the analysts have set a target price of $42 for Marathon Digital stock.
