MARA Holdings acquires 11,774 BTC for $1.1 billion, joining MicroStrategy in strategic Bitcoin investment, boosting market sentiment and growth.
MARA Holdings, a leading Bitcoin mining company, has significantly expanded its Bitcoin portfolio. Utilizing proceeds from its recent zero-coupon convertible notes offerings, MARA purchased 11,774 BTC for approximately $1.1 billion** at an average price of **$96,000 per Bitcoin.
Key Highlights:
- QTD BTC yield: 12.3%
- YTD BTC yield: 47.6% (as of December 9, 2024)
- Total holdings: 40,435 BTC (~$3.9 billion at $96,500/BTC)
Funding Strategy
On December 4, 2024, MARA announced plans to:
- Issue $700 million in zero-coupon convertible senior notes (due 2031).
- Float $105 million in options.
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Proceeds will primarily fund additional Bitcoin acquisitions, reinforcing MARA’s position in the cryptocurrency market.
MARA Joins MicroStrategy with Strategic Bitcoin Investment
MARA’s move mirrors institutional trends of adding Bitcoin to balance sheets. This aligns with MicroStrategy’s recent $2.1 billion purchase** of **21,550 BTC** (~$98,783/BTC), bringing its total holdings to 423,650 BTC**.
Why Institutions Are Betting on Bitcoin
- Hedge against volatility: Bitcoin’s scarcity and decentralization make it a resilient asset.
- Long-term store of value: Institutions diversify portfolios with crypto amid economic uncertainty.
- Optimized yields: MARA’s convertible notes strategy balances growth and financial stability.
Market Impact
- Positive sentiment: Institutional adoption fuels Bitcoin’s price momentum.
- Increased legitimacy: Corporate investments validate Bitcoin as a strategic reserve asset.
FAQ: Institutional Bitcoin Investments
Q1: Why are companies like MARA and MicroStrategy buying Bitcoin?
A1: They view Bitcoin as a hedge against inflation and a long-term store of value, diversifying their treasury assets.
Q2: How does MARA fund its Bitcoin purchases?
A2: Through convertible notes and equity offerings, minimizing dilution while securing capital.
Q3: What’s the average purchase price for MARA’s BTC?
A3: ~$96,000/BTC, reflecting strategic accumulation during market cycles.
👉 Learn more about Bitcoin investment trends
Conclusion
MARA Holdings and MicroStrategy’s billion-dollar Bitcoin acquisitions underscore institutional confidence in crypto’s future. As adoption grows, Bitcoin solidifies its role as a cornerstone of modern finance.