Bitcoin Miner MARA Holdings Purchases 5771 BTC For $572M
Bitcoin miner MARA Holdings has expanded its cryptocurrency portfolio, purchasing an additional 5,771 BTC for $573 million. The acquisition was completed at an average price of $95,554 per BTC.
MARA Holdings latest acquisition takes the companys BTC holdings to a staggering 33,875 BTC, valued at $3.4 billion, going by current prices.
MARA Holdings Latest Purchase
MARA Holdings leveraged its 0% convertible note offering to fund its corporate activities, including Bitcoin acquisitions. This offering allowed the company to achieve a 35% BTC yield per share, taking its holdings after the latest purchase to 33,875 BTC. MARA Holdings raised $1 billion from its latest offering and generated $980 million in net proceeds after fees and discounts. The company revealed it used part of these proceeds to purchase its latest tranche of BTC.
MARA Holdings latest acquisition highlights the companys strategy to accumulate BTC as a corporate asset, solidifying its position as one of the worlds largest Bitcoin-holding miners globally. The companys reporting of a 35% yield share also highlights the financial benefits of its aggressive BTC strategy. The convertible notes have also allowed the firm to access funds to purchase BTC without burdening itself with immediate interest payments. This has allowed it to focus on expanding its BTC reserves and scaling its mining operations.
Mirroring MicroStrategy
MARA Holdings latest BTC purchase mirrors strategies popularized by MicroStrategys Michael Saylor. Saylor has backed BTC as a corporate reserve asset and advocated for buying the asset during dips, leveraging corporate debt to acquire the asset and fuel long-term growth. MARAs use of convertible notes mirrors MicroStrategys approach, allowing the company to benefit from BTCs recent price appreciation. MARA also plans to allocate funds to expand its mining operations, repay debt, and pursue strategic acquisitions. The company stated that diversification will allow it to remain stable while increasing its exposure to BTC and growth potential.
Bitcoin (BTC) Rally Continues
Meanwhile, BTC continued its rally towards $100,000, peaking at $99,742 before declining to its current level of $98,600, registering a marginal decline over the past 24 hours. The rally has buoyed the crypto market, with BTCs market capitalization going above $1.9 trillion. Galaxy Digital CEO Mike Novogratz called BTCs price action a big moment, highlighting the resilience of the crypto ecosystem.
Shoutout to the crypto community. Youve endured years of uncertainty and headwinds.
BTCs latest rally has several drivers, including growing institutional interest and clear regulations under the incoming Trump administration. However, despite the optimism in the markets, some analysts have warned of a price correction thanks to increased leverage and speculative activity.
Disclaimer: This article is provided for informational purposes only. It is not offered or intended to be used as legal, tax, investment, financial, or other advice.
Read more: https://cryptodaily.co.uk/2024/11/bitcoin-miner-mara-holdings-purchases-5771-btc-for-572m
Text source: Crypto Daily™
