Marathon Increases Bitcoin Holdings and Embraces “Full HODL” Strategy

Marathon Digital Holdings, the world's largest Bitcoin mining company, has announced a $250 million offering of convertible senior notes due in 2031

Marathon Digital Holdings Inc (NASDAQ:MARA), the largest Bitcoin miner in the world, announced on Monday a $250 million offering of convertible senior notes, set to mature in 2031, that will be sold to “qualified institutional buyers”.

Marathon Digital now valued at over $18 per share after a 75% rally YTD

Marathon Digital shares are currently priced at $18.23 each after recovering from a low of $6.54 per share in 2022. At the start of this year, Marathon was valued at $5.64 billion. Thanks to a remarkable 75% price increase year-to-date, that figure now stands at $17.03 billion.

Among other things, Marathon also said on Monday that it may offer an additional $37.5 million in convertible senior notes, subject to market conditions. The company further added that it planned to use the proceeds from the offering for general business needs, such as acquisitions and debt repayment.

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The proceeds will also be used to buy more Bitcoin, which Marathon holds as a reserve asset. As of 8th August, the world’s largest cryptocurrency was valued at $59,864 per coin.

Marathon buying $100 million in BTC as part of its “full HODL” strategy

In July, Marathon Digital also announced to have significantly increased its Bitcoin holdings. The company added $124 million in BTC to reach a total of 20,818 Bitcoin, valued at over $1.14 billion.

Moreover, Thiel announced on 25th July that Marathon planned to “go full HODL”, a popular crypto term used to describe holding onto Bitcoin without selling. This decision was made to strengthen their strategy of holding Bitcoin as a strategic treasury reserve asset.

As part of this plan, Marathon purchased $100 million in BTC over the past month. Despite these buying efforts, however, the Bitcoin price continues to hover below the $60,000 mark. At 11:52 am UTC, Bitcoin traded at $59,908, having fallen over 1.2% in the past 24 hours.

On the other hand, the world’s leading cryptocurrency showed a significant recovery of over 16% on a weekly basis, as highlighted by CoinMarketCap.

Bitcoin ETF inflows also stalled in recent weeks

In addition to this, inflows into U.S.-based spot Bitcoin exchange-traded funds (ETFs) stalled in recent weeks. Data from Farside Investors now shows that ETFs experienced $89 million in cumulative net outflows as of 9th August.

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