- For almost $1.53 billion, MARA, the biggest miner in the United States to be publicly listed, purchased 15,574 Bitcoin.
- For over $100 million, Hut 8, the eighth-largest public miner by market capitalization, purchased 990 bitcoin.
As the industry continues to adapt to the post-halving future, Bitcoin miners have been using millions of dollars’ worth of the largest cryptocurrency in the world in recent weeks in an attempt to bolster their reserves. Among the most recent to increase their accumulations are MARA and Hut 8.
Previously known as Marathon Digital, MARA said on Thursday that it has raised $1.925 billion from November and December’s 0% convertible notes. For around $1.53 billion, or $98,529 per bitcoin, the biggest publicly traded miner in the United States has purchased 15,574 BTC using the proceeds from its zero-coupon convertible notes sale. Additionally, it has bought back $263 million in total principal of its outstanding convertible notes that are due in 2026, with the intention of using the money saved to buy more bitcoin.
With a spot price of $100,151, MARA’s holdings of 44,394 BTC as of December 18 are worth $4.45 billion.
Hut 8, which is presently ranked ninth in terms of market capitalization, also said on Thursday that it had paid about $100 million to purchase 990 bitcoin. As of December 18, Hut 8’s strategic Bitcoin reserve stands at 10,096 BTC, with a market worth above $1 billion. According to the corporation, this places them among the top ten corporate Bitcoin owners worldwide.
The strategic Bitcoin reserve, a vital part of our treasury strategy, facilitates a flywheel effect that synchronizes our operating and capital plans to speed up value generation throughout the company. Building a strategic Bitcoin reserve would strengthen our financial position as we pursue large-scale expansion ambitions across power and digital infrastructure, which we firmly believe in.
Getting popular
This disclosure comes the same week Riot Platforms used a recent convertible senior notes issue to expand its holdings to 17,429 BTC.
Once exclusive to crypto-natives, adding bitcoin to the balance sheet is now becoming more widely accepted due to a positive outlook following the election. Expect an increasing number of publicly traded companies to use extra treasury funds by considering bitcoin as a reserve asset as the floodgates begin to open.
Leading corporate bitcoin holder MicroStrategy, meanwhile, paid about $1.5 billion to acquire an additional 15,350 BTC. The business currently owns 439,000 Bitcoin, which is more than $45 billion. In only the last six weeks, the business intelligence firm has added $17.5 billion in bitcoin, or almost 39% of its overall holdings.
Every day is a good day to purchase bitcoin, so we’ll just keep purchasing the top. I would have purchased Manhattan every year for the previous 300 years, 100 years ago, and 200 years ago.
You pay a little bit more than the guy that bought Manhattan before you, but it’s always a wise investment to invest in the economic capital of the free world.
MicroStrategy has taken a high-stakes wager on the adoption of cryptocurrencies by using its primary software business and taking on a large amount of debt in order to amass bitcoin. This has caused both admiration and cynicism in the market.
The MSTR model could be used by smaller businesses with excess capital and a deteriorating primary business.
Due to their core business supremacy, larger tech businesses would not scale Bitcoin, while smaller startups are entering the capital markets for the first time.
Disclaimer : This article was created for informational purposes only and should not be taken as investment advice. An asset’s past performance does not predict its future returns. Before making an investment, please conduct your own research, as digital assets like cryptocurrencies are highly risky and volatile financial instruments.
