30s Summary

Marathon Digital (MARA) has increased its Bitcoin holdings by 6,474, pushing its holdings up by 36.7% to 34,797 coins worth about $3.3 billion. This followed a $1 billion debt offering, part of which the company plans to use to buy more Bitcoin in a downturn. Meanwhile, MicroStrategy is employing similar tactics, aiming to acquire $42 billion in three years and recently raising $3 billion at 0% interest. Despite a 25% stock price drop, MicroStrategy bought 55,000 Bitcoin, bringing the total to 386,700 Bitcoin. However, critics warn the debt-raising strategy for buying Bitcoin is risky and unsustainable.

Full Article

On November 27th, the mining company MARA, also known as Marathon Digital, shared some updates about its recent activity. They’ve been busy buying Bitcoin — they bought up to 6,474 Bitcoin with the money they got from a $1 billion offering.

Initially, they bought 5,771 BTC at an average price of $95,395 per coin and then added 703 more Bitcoin after that. So far this year, each share of MARA’s Bitcoin holdings has increased by 36.7%. Right now, they’re sitting on about 34,797 Bitcoin, which is a significant treasure chest worth around $3.3 billion.

Remember that $1 billion offering they had? It looks like they bought some of those notes for $200 million and have about $160 million left over. They’re planning to use that cash to snag more Bitcoin when the price takes a dip, which sounds like a smart strategy.

This plan mirrors what another company, MicroStrategy, has been doing by using money gotten from debt offerings to buy more Bitcoin. This strategy seems to be gaining popularity among corporates and institutions.

Now, speaking about MicroStrategy, they’ve been buying Bitcoin since 2020 and recently raised another $3 billion debt at 0% interest. This hefty cash inflow is a part of their ambitious plan to secure $42 billion over three years and use that to buy more Bitcoin and, in general, boost their bank balance. Despite the drop in MicroStrategy’s stock price by 25% on November 21, 2024, the company’s pretty resilient. In fact, they bought approximately 55,000 Bitcoin in the week of November 18 to 24 at an average price of nearly $97,862 per BTC. This means they now hold about 386,700 BTC, which makes them one of the biggest Bitcoin owners out there.

It’s not all smooth sailing though; there are critics who think buying Bitcoin by raising debt is a risky business and not sustainable. They believe that MicroStrategy could face a tough time if Bitcoin prices nosedive. Of course, the company won’t have to repay their debt until 2028 which gives them time to deal with short-term market ups and downs.