MARA Holdings, the world’s largest publicly traded bitcoin miner, has significantly expanded its cryptocurrency reserves by purchasing 6,474 bitcoin worth approximately $615 million. This acquisition brings the company’s total bitcoin holdings to 34,794 BTC, valued at nearly $3.3 billion, according to its latest announcement.
Details of the Acquisition
- Average Purchase Price: $95,395 per bitcoin
- Incremental Buys: The latest acquisition includes an additional 703 BTC purchased after an initial 5,771 BTC buy last week.
- Funding Source: The purchases were funded by a $1 billion offering of 0% convertible senior notes due 2030, closed last week.
MARA stated it plans to allocate approximately $199 million from the raised funds to repurchase existing convertible notes due in 2026. The remaining proceeds, approximately $160 million, are earmarked for further bitcoin acquisitions and corporate initiatives.
Market Impact and Stock Performance
- Stock Movement: MARA’s shares rose 7.81%, closing at $26.92 on Wednesday. Over the past month, the stock has gained 42.13% and is up 17.4% year-to-date, with a current market cap of $9 billion, according to Google Finance.
- Industry Activity: MARA’s strategic bitcoin buys come amid a wave of high-profile investments in the cryptocurrency by publicly traded companies.
Broader Market Context
- MicroStrategy’s Record Purchase: Earlier this month, MicroStrategy, another corporate bitcoin giant, acquired 55,500 BTC for approximately $5.4 billion, pushing its total holdings to 386,700 BTC.
- SOS Ltd.’s Entry: Chinese firm SOS Ltd. announced plans to invest $50 million in bitcoin, driving its stock price up 42.88% on Wednesday.
Challenges and Outlook
While MARA has been aggressively investing in bitcoin, the company faces ongoing financial challenges. In its third-quarter earnings report, MARA revealed a net loss of $124.8 million, a sharp decline from a modest loss of $390,000 in the same period last year.
Despite these hurdles, MARA’s bold moves reflect growing institutional confidence in bitcoin as an asset class. With large-scale acquisitions by MicroStrategy, MARA, and others, the narrative of long-term bullishness in the crypto market continues to strengthen.
